What constitutes a breach of fiduciary duty in mortgage lending?

A breach of fiduciary duty in mortgage lending occurs when a lender or mortgage broker fails to act in the best interest of their client, particularly in terms of providing complete and accurate information. By failing to disclose important terms, a lender or broker not only withholds critical information but also undermines the trust that must exist in the lender-borrower relationship. This omission can lead to significant consequences for the borrower, who may make uninformed decisions based on incomplete information. Therefore, it is essential for lenders and brokers to fully disclose all relevant loan terms so that borrowers can understand their options and obligations clearly. This transparency is a fundamental aspect of maintaining a strong fiduciary duty.