Ethics: Navigating a Moral Compass · 2019-07-11 · Ethics: Navigating a Moral Compass Author: Genworth Mortgage Insurance Subject: Use this presentation to follow along with our

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Ethics: Navigating a Moral Compass

July 2019

Ethics

:Outline‏

– Define ethics

– Discuss the importance of and differences between acting ethically, legally

and prudently

– Develop tools to assist in making ethical decisions

– Apply those tools to an examination of ethical lapses in the mortgage

industry over the past few years

– Help each person develop a personal code of ethics to use in mortgage

lending

2Ethics: Navigating a Moral Compass

What Does “Ethics” Mean?

–‏ Define what “ethics” means to you

–Write a 25 word (or less) statement below


Ethics is a code of values which guide“‏

our choices and actions and determine‏

”.the purpose and course of our lives‏

-‏ Ayn Rand


?Are your ethics based on actions or consequences‏

– Actions:

• The action dictates if something is ethical

– Consequences:

• The common good dictates if something is ethical

Charting Your Ethical Map




Reasoning vs Rationalization‏

– Reasoning:

• Running facts through an ethical decision making process to arrive at a course of action

– Rationalization:

• Finding reasons to support a course of action that was already decided


Map of Ethical Decision Making



There’s more to life than ethics‏

– Decisions must be:

• Ethical

• Legal

• Prudent

– This class only deals with ethical considerations

– Remember to consider legality and prudence in all decisions

– The best course of action is that which is legal, prudent, and ethical



Ethical Lapses and the Role of Desensitization‏

– Three Big Transgressions:

• Deceive

• Steal

• Harm

– Were there examples of these in mortgage lending over the past few

years?

– Did desensitization play a role in allowing this to happen?

• “If I don’t do it, the LO down the street will.”

• “As long as the lender allows it, it must be okay.”

• “It will be fine as long as property values keep increasing.”

– Can you think of any specific instances over the past few years in which

desensitization allowed you to do something you regret?

• Professionalism

• Integrity and Confidentiality

• Public Trust

• Fiduciary Responsibility

• Disclosure

• Conflict of Interest

Developing Positive Ethical Standards


• Legal Compliance

• Non-Discrimination

• Honesty in Advertising

• Sanctity of Agreements

• Competition

• Other



Professionalism‏

– Conforming to the standards of a profession

– Having or showing great skill; expert

Source: Dictionary.com



Integrity and Confidentiality‏

– Integrity

• Adherence to moral and ethical principles; soundness of moral character; honesty

– Confidentiality

• Spoken, written, acted on, etc. in strict privacy or secrecy; secret

• Having another’s trust or confidence; entrusted with secrets or private affairs




Public Trust‏

– Trust

• Reliance on the integrity, strength, ability, surety, etc. of a person or thing; confidence




Source: dictionary.law.com

Fiduciary Responsibility‏

– One person places complete confidence in another in regard to a particular

transaction or one’s general affairs or business

– …can be one of moral or personal responsibility due to the superior knowledge

and training of the fiduciary as compared to the one whose affairs the fiduciary is

handling



Disclosure‏

– The act or an instance of disclosing; exposure; revelation

– The need in business transactions to tell the “whole truth” about any matter

which the other party should know in deciding to buy or contract




Conflict of Interest‏

– A situation in which a person has a duty to more than one person or

organization, and cannot do justice to the actual or potentially adverse interest of

both parties

– This includes when an individual’s personal interests or concerns are

inconsistent with what is best for a customer

– Many professionals must avoid even the appearance of conflict



Legal Compliance‏

– Legal compliance is doing (or not doing) something (i.e. acting) in accordance

with the law and rules and regulations of the law which covers the particular

activity




Non-Discrimination‏

– Discrimination:

• Treatment or consideration of, or making a distinction in favor of or against, a person or

thing based on the group, class, or category to which that person or thing belongs rather

than on individual merit




Honesty in Advertising‏

– Honest:

• Marked by or displaying integrity; upright: an honest lawyer

• Not deceptive or fraudulent; genuine: honest weight

• Equitable; fair: honest wages for an honest day’s work

– Advertising:

• The activity of attracting public attention to a product or business, as by paid

announcements in the print, broadcast, or electronic media




Sanctity of Agreements‏

– Sacred:

• Hence, not to be profaned or violated; inviolable

– Agreement:

• A binding arrangement between two or more parties




Competition‏

– Rivalry between two or more businesses striving for the same customer or

market




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Additional MI Site Information


➢ ActionCenter®: 800 444.5664

➢ Your Local Genworth

Regional Underwriter

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Representative

Your Genworth Resources


31

GENWORTH RESOURCES

ActionCenter®: 800 444.5664

Your Local Genworth Underwriting Manager

Your Genworth Account Executive or Manager


Legal DisclaimerGenworth‏ Mortgage Insurance is happy to provide you with these training materials. While we strive

for accuracy, we also know that any discussion of laws and their application to particular facts is

subject to individual interpretation, change, and other uncertainties. Our training is not intended as

legal advice, and is not a substitute for advice of counsel. You should always check with your own

legal advisors for interpretations of legal and compliance principles applicable to your business.

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Ethics: Navigating a Moral Compass · 2019-07-11 · Ethics: Navigating a Moral Compass Author: Genworth Mortgage Insurance Subject: Use this presentation to follow along with our