Scenario 17: When must a mortgage broker obtain a client's consent to conduct a credit check?

Question: Scenario 17: When must a mortgage broker obtain a client's consent to conduct a credit check?

Answer options:

• During the final stages before mortgage funding.
• Only if the client specifically requests it. ✅ Before applying for any mortgage product on behalf of the client, as part of the due diligence process.
• Never, as credit checks are not permitted without a signed mortgage agreement.

Correct answer: Before applying for any mortgage product on behalf of the client, as part of the due diligence process.

Explanation: A credit check is a fundamental part of assessing a client's creditworthiness. Brokers must obtain explicit consent before performing one to comply with privacy laws and ensure ethical data handling. The correct answer is "Before applying for any mortgage product on behalf of the client, as part of the due diligence process.". This capacity-fill scenario 17 reinforces the same competency for the mortgage-broker bank and follows the certified explanation standard.