Agency

An Arizona buyer's agent who is also a licensed mortgage broker and originates the buyer's loan without disclosure is:

AProviding a valuable one-stop-shop service
BViolating RESPA and the duty of loyalty through an undisclosed conflict of interest✓ Correct
CActing within their rights as a dual licensee
DPermitted if the buyer signs a general authorization

Explanation

An agent who originates their own buyer's loan has a financial conflict of interest that must be fully disclosed. Failure to disclose violates RESPA's affiliated business arrangement disclosure requirements and the agent's fiduciary duty of loyalty.

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