What must a Mortgage Broker do before accepting a fee from a borrower?

The correct answer involves the requirement for a Mortgage Broker to receive a written commitment to make a mortgage loan before accepting a fee from a borrower. This condition is crucial because it protects both the borrower and the broker by ensuring that the broker has a legitimate agreement in place that commits the lender to provide the loan. Acceptance of fees without such commitment could lead to situations where the borrower pays for services that do not guarantee the receipt of a mortgage, which could result in financial loss and a lack of trust in the broker.

The necessity of a written commitment is aligned with the regulations designed to promote transparency and accountability within the mortgage lending process. By ensuring that a formal loan commitment is secured first, the broker demonstrates professionalism and compliance with legal standards.

The other options do not meet this critical requirement. A good credit score can indicate financial reliability but does not replace the need for a formal commitment from a lender. A verbal agreement lacks the enforceability and clarity of written documentation, leaving both the borrower and the broker vulnerable. While providing a loan estimate is an important part of the mortgage process, it does not meet the regulatory requirement that is pivotal before any fee is accepted. Thus, obtaining a written commitment is the key step that ensures all parties are on secure footing prior to