are mtg brokers fiduciaries in California, or not?

[cantab]

Is it true that in California mtg brokers are fiduciaries, i.e. they are legally required to act in the best interest of customers, unlike in other states?

According to the NY TImes today: “But the state affords homeowners some protections not found elsewhere: mortgage brokers here must act in the fiduciary interest of their clients.”

http://www.nytimes.com/2007/09/25/business/25broker.html?pagewanted=2

[NotCranky]

Fiduciary relationship? What does it matter if nobody cares? I mean there is so much gray area and lack of interest in individual cases as to render any regulation void. No offense to anyone in the business because all don’t wear the same shoes. Clearly not many are holding themselves to the standard of what an average person would feel was a fiduciary realtionship. It is flaunted on the Real Estate sales side too. Nobody cares.

[VoZangre]

Admittedly ignorant to the subtler workings of RE my instincts always told me it, the inflation of the now bursting bubble, was predatory/cannabalistic in the saddest, unethical ways…

What matters most
is how well you
walk through the fire…

[Pasadena Broker]

“Fiduciary duty”, now that’s something I don’t get to read everyday.

It’s not a legal requirement, but something akin to a recommendation. Unfortunately, in the frenzy illustrated in the past 6 years, for many in the mortgage business, fiduciary duty was thrown out the window.

They’re out there, the mortgage brokers that hold themselves to a high standard and haven’t lost their humanity/sincerity.

[Author]

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