Transcript Code of Business Conduct - PHE Compliance

CONTENTS
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A Message from Aaron Wimsatt and Jack Williamson…….
PHE’s Mission and Values………………………………….....
What is PHE’s Code of Business Conduct?.........................
Conflict of Interest ………………………………………….....
Gifts and Entertainment……………………………………….
 Political Activity and Contributions…………………….
Protecting Information & Assets……………………………..
Our Responsibilities as a Mortgage Banker / Lender…….
Protecting You at Work…………………………………………
Compliance with the Code…………………………………...
A Message from your C&E Office……………………………
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4
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29
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A Message From
Aaron Wimsatt and Jack Williamson
Dear Colleagues,
Since our beginning in 2001, PHE has always taken pride in conducting
our business ethically and in compliance with laws and regulations. Our
clients trust us to be ethical, behave appropriately, and use sound
judgment in everything we do.
PHE employees continue to earn that trust every day whenever we work
with clients, providers, partners, vendors, and with our PHE colleagues.
In 2014 we will celebrate our 13th year in the mortgage industry. We are
proud of everything that PHE has accomplished since its beginning. And
more importantly, we are grateful that we have earned the trust of many
homeowners throughout our branch offices and headquarters locations.
Please familiarize yourself with the code. Following its guidelines will
equip us to act appropriately, use proper judgment, and maintain the trust
of our homeowners, vendors, and mortgage partners.
PHE’s Mission:
IN THE BEGINNING...
Peoples Home Equity was formed
in 2001, dedicated to helping
individuals with homeownership
needs in our communities. Our
efforts to provide the best Service
and Trust to our clients, combined
with extensive mortgage
experience to accommodate your
needs, has given us our company
motto: Trusted... Experienced…
Secure.
TODAY...
We are a fully functional
Conventional and Government
HUD APPROVED LENDER
(1953900009) servicing retail
clients and mortgage affiliates
across the country. In 2009,
Peoples Home Equity evolved to a
Full Eagle FHA Banker. We offer
on-site underwriting (for much
faster turnaround times), and
more programs than ever.
TOMORROW...
To continue our vision, we wish to
be the overwhelming choice in
mortgage programs and services
by delivering unmatched value
through innovation, exceptional
quality, unparalleled service, and
well-earned trust.
PHE’s Values:
CUSTOMER FOCUS...
At PHE, our reason for existence is
service to our homeowners and
their communities. We build
enduring relationships with our
customers – homeowners and
mortgage industry partners – by
understanding and anticipating
their needs, and by taking the
initiative to better serve them.
QUALITY THROUGH
CONTINOUS IMPROVEMENT...
Quality is defined by customer
requirements in the mortgage
services we provide. We meet or
exceed these requirements by
continually looking for ways to
improve the products we deliver,
services we provide, and
processes we undertake. Those
who practice this value realize that
remaining competitive comes not
from “big leaps,” but from small,
incremental improvements over
time.
PHE’s Values continued:
TEAMWORK...
Teamwork means working
together to accomplish our
organizational objectives and to
meet the needs of our customers.
Those who practice this value
realize that our future depends less
on the initiative or expertise of a
few individuals and more on highly
collaborative partnerships with
other PHE departments, members,
employers, and providers.
Teamwork also means recognizing
that our best decisions come from
sharing ideas, being good
listeners, and taking the time to
understand other points of view.
DEVELOPMENT OF
EMPLOYEES...
At PHE, development of people
means increasing an individuals
value to our organization by
providing training and
development opportunities while
encouraging the individual to take
ownership for their development
and career progression.
PHE’s Values continued:
INTEGRITY...
Integrity means we are honest and
ethical in all our business dealings.
Regulations require auditing and
monitoring systems to detect
criminal conduct. We offer
anonymity and confidential
reporting systems with a
compliance hotline for ethics help
and guidance.
Unwavering dedication to doing
what’s right makes us successful.
Ethics represents the high road –
not only complying with the law,
but doing so because it’s the right
thing to do.
INNOVATION...
PHE seeks to build an environment
in which innovation – the
development and application of
new ideas – is encouraged and
supported. It means being open to
new products, services, business
opportunities, and ways of doing
business. We want our mortgage
partners and providers to know we
will deliver creative solutions for
their needs.
What is PHE’s Code of Business Conduct?
It’s an Expression of
Commitment...
To reiterate, Integrity means we
are honest and ethical in all our
business dealings. Regulations
require auditing and monitoring
systems to detect criminal conduct.
We offer anonymity and
confidential reporting systems with
a compliance hotline for ethics
help and guidance.
Unwavering dedication to doing
what’s right makes us successful.
Ethics represents the high road –
not only complying with the law,
but doing so because it’s the right
thing to do.
It’s a Guide to Doing the Right
Thing...
Since our beginnings in 2001, our
employees have worked hard to
provide PHE customers and
mortgage partners with access to
quality mortgage services at a
reasonable price. PHE has earned
the trust of these clients by
working in their best interests and
following the letter and spirit of
laws and regulations that apply to
our business.
We continue to re-earn our clients
trust each day by ‘doing the right
thing,’ making the right decisions,
and taking the right actions.
What is PHE’s Code of Business Conduct?... continued
It’s Our Responsibility...
We all share the responsibility to:
 Comply with laws and
regulations that apply to our
business.
 Report possible compliance
issues promptly, completely, and
fairly without fear of retaliation.
 Work with integrity and honesty
in the best interest of our
customers, community, and
mortgage partners.
It’s important to speak up, ask
questions, or raise issues in your
daily activities if you think there
are ethical implications. PHE’s
reputation as an ethical company
depends on you.
PHE’s Commitment to
Non-Retaliation...
PHE encourages open
communication of compliance and
ethics issues and inquiries. PHE
prohibits intimidation against any
individual for reporting in good
faith an actual or suspected noncompliance issue or participating
in an investigation of an actual or
suspected non-compliance issue.
Any person engaged in retaliatory
acts or any person who knows of
an occurrence of retaliation and
either fails to stop such an act or
report it will be subject to
discipline up to and including
termination of employment.
What is PHE’s Code of Business Conduct?... continued
Contact Us…
Our Code of Business Conduct is a
starting point and an invitation.
The sections of the Code that
follow provide guidance in
recognizing and addressing
possible compliance issues. But
the guidance and support does not
end with this Code.
How To Reach Us...
 Email us at:
The Compliance & Ethics Office is
here for you when you have a
question about compliance, when
you see a potential compliance
incident, or when you have a
compliance concern.
[email protected] to
[email protected]
 Call us at: 1-615-872-0220 x603
for your questions.
If you wish to contact us
anonymously, please call the
Compliance & Ethics hotline at:
1-615-872-0220 x191 or
make an anonymous report.
The hotline is available 24hours
a day, seven days a week.
Conflict of Interest
A conflict of interest occurs when
our personal interest affect or
influence our ability to act in the
best interest of PHE.
To maintain our high ethical
standards, we are expected to
avoid conflicts of interest. PHE
employees must ensure they do not
engage in activities that could
influence or appear to influence
their judgment or objectivity.
Because the perception of a
conflict of interest is as important
as an actual one, we are expected
to avoid doing anything that even
appears improper.
An apparent conflict of interest
arises where an employee’s
personal interest could appear to
influence their actions even though
the outcome of those actions can
be justified.
Usually, a conflict of interest can be
avoided if it is disclosed in
advance. If you aren’t sure if
there’s a conflict of interest, talk to
your supervisor or check with the
Compliance & Ethics Office.
Conflict of Interest Examples:
Here are some examples of
conflicts of interest that must be
disclosed in advance:
 Working for a competing
lender. It doesn’t matter what
kind of work you’re doing for
them – any job you have is a
conflict of interest.
 Working for a Realtor, Title
Agency, Credit provider, or 3rd
party Vendor or servicer.
 Accepting gifts, payments or
services from people who do
business with PHE (or would
like to do business with PHE) if
it influences your ability to act in
the best interest of PHE.
 Accepting gifts, payments or
services that exceed our gifts
and entertainment limits from
people who do business (or
would like to do business) with
PHE.
 Doing business on behalf of PHE
with a company that is owned or
controlled by a PHE employee,
an employee’s family member,
or someone you have a personal
relationship with or may be
perceived to have a personal
relationship with.
 Owning or having a substantial
interest in a company that
competes with PHE.
 Operations staff acting as a
consultant to a PHE customer.
Conflict of Interest Examples:
A Second Job:
Our primary employment
obligation is to PHE. We are
allowed to have a second job, but
the job must not require us to use
confidential PHE information or
affect our work at PHE.
Here are some commonly asked
Q&A’s about having a 2nd job:
 Q: I work at PHE MondayFriday, 8am-5pm. On the
weekends I have another job at
a department store. Is this a
conflict of interest?
 A: No. Your weekend job does
not interfere with our work at
PHE.
 Q: I work at PHE MondayFriday, 8am-5pm. I also have a
weekend job at another
mortgage banker, is this a
conflict of interest?
 A: Yes. Although your weekend
hours do not interfere with your
PHE hours, your job at a
competing lender is a conflict of
interest with PHE.
 Q: My family’s small business
gets appraisal orders for homes
from PHE. Can I also work for
my family’s company?
 A: This may be a conflict of
interest. You will need to
discuss the specifics of your
situation and job functions with
the Compliance & Ethics Office.
Conflict of Interest Examples:
Personal Financial Interests:
PHE employees should avoid any outside financial interests that may
influence their decisions or actions on behalf of the company.
Examples include personal or family investment or involvement in
organizations that do business or complete with PHE. A small portfolio
holding of stock or other securities in publicly traded companies is
permitted.
However, you should not hold stock in known vendors of PHE where your
objectivity in dealing with the vendor may be questioned. Please consult
the Compliance & Ethics Office at 615-872-0220 x603 or
[email protected] if you have any questions.
Gifts and Entertainment
Giving and accepting gifts are a familiar part of doing business. We need
to be careful, however, that exchanging gifts does not influence our
business-making decisions.
Perishable gifts, such as flowers and food baskets, with a value of more
than $100 may be accepted only if they can be shared by the department
and appropriate management approval is obtained.
PHE often purchases goods or services from a supplier that also obtained
goods or services from PHE. For example, we may purchase services from
a printer who obtained mortgage loan services on their home from PHE.
While this may be a normal and acceptable business practice, we must
avoid any form of pressure for reciprocity.
Gifts and Entertainment continued:
Accepting Gifts and
Entertainment…
We may accept gifts which include
entertainment such as meals, from
individuals or entities outside of
PHE only if all of the following
conditions are met:
• Its not in the form of cash.
• Nothing of value is ever
solicited from anyone PHE does
business with. This includes
vendors, suppliers, providers,
and subscribers.
• The value does not exceed $100
per occasion.
• The total value received does
not exceed $250 per year.
Also:
 Accepting a gift must not affect
our ability to act in PHE’s best
interest.
 The gift should not be given
with the intent to obtain or
reward favorable treatment from
PHE.
 The gift is reasonable and
appropriate to the occasion and
given infrequently, regardless of
the amount.
 We must tell our supervisor
about the gift and then note it on
our annual conflict of interest
disclosure form as appropriate.
Gifts and Entertainment continued:
On occasion, a vendor or supplier will offer benefits companywide, such
as discounts, rebates, or credits. All such arrangements must be approved
in advance by the C&E Office to ensure compliance with anti-kickback
restrictions.
• Q: I was invited on an allexpense paid trip to San
Francisco for a training class
to learn more about a
vendor’s product that PHE is
interested in providing. Can
I accept this offer?
• A: Each situation is different, so
employees should always notify
the C&E Office. In this case, it
would not be appropriate to
accept the offer. Accepting a
free trip from a vendor may
make it difficult to objectively
review their product and may
give the appearance that a
decision to accept their product
was influenced by the free trip.
You may attend only if
management determines that the
training is in PHE’s best interest,
and covers all travel expenses.
Gifts and Entertainment continued:
Offering Gifts and
Entertainment…
You may offer gifts and
entertainment to individuals or
entities outside of PHE only if all of
the following conditions are met:
• Its not in the form of cash.
• Is not perceived to be a “thing of
value”
Also:
 The gift is reasonable and
appropriate to the occasion.
 It does not create the
appearance of impropriety or
cause embarrassment to PHE.
 It is not extended with the intent
to obtain or reward favorable
treatment.
 It does not violate any policy of
the recipient's company or
organization.
 Gifts and entertainment
extended to government
agencies, state employees or
legislators are not allowed; such
as FNMA/FHLMC, GNMA, HUD,
CFPB, IRS, and the Department
of Labor, to name a few.
Gifts and Entertainment continued:
Offering Gifts and Entertainment…
Customer decisions should always be made on the merits of PHE’s
products and services, our record of superior performance, and the
strength of our proposals -- not as a result of any real or perceived unfair
or illegal advantage. While offering business courtesies and
entertainment is a common and accepted business practice, it should be
conducted within the guidelines of this Code.
Special laws govern kickbacks from vendors and suppliers under RESPA.
A kickback is any money, fee, commission, credit, gift or gratuity, thing of
value, or compensation of any kind that is provided directly or indirectly
for the purpose of improperly obtaining or rewarding favorable treatment.
We have a no-gift policy when dealing with any federal government
employee.
Gifts and Entertainment continued:
Political Activity and Contributions…
We comply with all laws and regulations regarding the use of company
resources for political activities. Federal campaign finance laws generally
prohibit payments from corporate funds to any candidate campaigning
for federal office. State laws may vary, please contact the C&E Office for
limits on corporate contributions to a candidates campaigning for state
office.
We are encouraged to vote, become involved in civic affairs, and
participate in political activities. We are free to make personal
contributions consistent with applicable federal, state or local laws to
support candidates or political organizations. Our participation should
be done on our own time, however, and should not use PHE’s funds,
supplies, facilities, or other resources.
Protecting Information and Assets:
Our Clients Information…
Confidential Client Information (CCI) is any information that can be used
to identify a customer, or their non-public, financial information.
Examples of CCI include name, address, date of birth, social security
number, PHE loan number, income or employment information, loan
terms, etc.
PHE clients and mortgage partners entrust us daily with their confidential
information. We must diligently protect CCI to continue to earn that trust.
Laws such as the Graham-Leach Bliley Act and the Privacy Act give the
federal and state government authority to impose fines and criminal
penalties on PHE and their employees when CCI is mishandled.
Identity Theft…
Because we are concerned about our clients financial and account
security and well-being, PHE has placed policies, procedures, and
network restrictions to detect, prevent, and mitigate identity theft.
Protecting Information and Assets:
We are all responsible for:
• Conducting our business in accordance with all federal and state laws
for privacy and security.
• Disclosing CCI only on a need-to-know basis, only in the minimum
amount necessary, only if your role permits you to do so, and only as
authorized by PHE.
• Asking the C&E Office if there are questions about disclosing CCI.
Our Business Information…
Confidential business information is:
• Generally not disclosed both inside and outside of PHE without
authorization from management.
• Requires the highest level of protection.
• Could cause harm to an employee, mortgage partner, provider, vendor,
or PHE if disclosed or altered.
Protecting confidential business information is the responsibility of every
PHE employee, partner, and board member. This responsibility continues
even after our employment, contract, or affiliation with PHE ends.
Protecting Information and Assets:
Our Business Information
continued…
Before disclosing confidential
business information to individuals
or organizations outside of PHE:
• Make sure that the disclosure
will not violate any federal or
state laws. Check with the C&E
Office if you aren’t sure.
• Make sure the document is
labeled “Confidential.”
• Get approval from a PHE
director or officer.
• Make sure the disclosure is
covered by a non-disclosure
and confidentiality agreement
that has been approved by
Legal Services.
• Follow PHE’s external data
request procedures when
applicable.
When sharing confidential
business information in a letter,
document, email or conversation,
we must be careful to:
• Encrypt and securitize external
email or electronic delivery with
128-bit encryption (i.e., email,
internet).
• Label reports, spreadsheets, or
other documents with the
appropriate restrictive legend.
Putting legends such as
“Confidential” gives third
parties notice that PHE
considers the information to be
protected.
Protecting Information and Assets:
Our Business Information
continued…
• Be aware of our surroundings to
reduce the chance of accidental
disclosure of confidential
business information through a
telephone call or casual
conversation, whether at a PHE
office or in a public setting (like
someone appearing over your
shoulder in a public internet
café).
• When sending information to an
external address, make sure that
the information being sent is
appropriate.
• Type “PHESECURE” in the
subject line of all emails
containing confidential
information sent to an
external address.
Protecting Information and Assets:
Using PHE’s Assets…
Company assets include
intellectual property, business
strategies and plans, trade secrets,
financial or proprietary
information, and software.
With the continuing changes in
regulations with the financial and
mortgage industries, being
prudent with PHE’s assets for
business purposes remains critical.
We should follow appropriate
procedures when buying supplies,
equipment, or other assets to
obtain quality items at the best
possible price. We are also
responsible for ensuring that
company assets are used only for
valid company purposes. Follow
these guiding rules:
• Never use PHE assets in
connection with your second job
or side business.
• Limit personal use of company
telephones, computers, fax
machines, or emails. Never use
them for personal gain or illegal
purposes, or in connection with
your second job or side
business.
• Transfer company assets to
other persons or entities only to
support a business need and in
accordance with company
policy.
Protecting Information and Assets:
Using PHE’s Assets continued…
• Assets no longer needed for
PHE business may be disposed
of or, in certain cases, sold to
employees at market value.
Such disposals or sales must be
supported by properly
approved and signed
documentation.
Accurate Recordkeeping…
PHE provides a wide variety of
performance reports, financial
statements, proposals, budgets,
and other reports to government
agencies (i.e., HMDA reporting to
the FFEIC), auditors, accreditation
organizations, and other entities.
These reports often include
management certifications or
attestations.
Employees who prepare, sign, or
support these reports and their
underlying records must ensure
that they are prepared carefully,
accurately, and ethically. Late or
inaccurate reports submitted can
result in compliance actions that
range from corrective action plans
and increased agency scrutiny to
fines and penalties.
Protecting Information and Assets:
Accurate Recordkeeping
continued…
PHE Recordkeeping Policies:
• Labor, material, and other costs
must always be charged to the
proper account. Labor
timesheets and other cost
records must be complete and
accurate.
• PHE books and records must
accurately reflect the true nature
of transactions that they
represent. Employees must take
no action to cause PHE books
and records to be misleading or
inaccurate.
Contact the C&E Office at
615-872-0220 x603 or call the
Hotline at 1-615-872-0220 x191 to
anonymously report any concerns
related to financial reporting
irregularities or questionable
accounting practices.
Protecting Information and Assets:
Accurate Recordkeeping
continued…
Record Retention:
PHE applies effective, cost-efficient
records management to maintain
complete and accurate records.
Records are retained to meet
business needs as well as to be in
compliance with federal and state
laws and regulations. They should
be properly destroyed after the
appropriate record-retention
period.
Records connected to litigation or
audits may need to be kept beyond
normal retention periods.
Follow special requirements issued
by Legal Services to ensure that
relevant records are not destroyed
until such cases or investigations
are closed.
Contact the C&E Office for
valuable information about record
retention, including definitions of
“record” and “non-record” and
document retention notices.
Our Responsibilities as a Mortgage Banker / Lender:
Fraud and Abuse Prevention…
To combat mortgage fraud and abuse, we investigate complaints, conduct
proactive case development, raise fraud and abuse awareness, and
conduct provider and vendor oversight (i.e., mock audits). PHE’s C&E
Office leads our efforts to detect, investigate, and prevent fraud and abuse.
Internal Fraud and Abuse Prevention…
We are all responsible for the detection and prevention of internal fraud.
Internal fraud is the intentional misrepresentation or concealment of
information within PHE for financial or other gain. Examples of internal
fraud may include:
• Unauthorized alteration or
• A dishonest act.
manipulation of computer
• Forgery or alteration of any
files.
official PHE document.
• Unauthorized destruction,
• Misappropriation or misuse
removal, or inappropriate
of funds, supplies, or other
use of records.
PHE assets.
• Any similar or related
• Impropriety in the handling
irregularity.
of reporting of money.
Our Responsibilities as a Mortgage Banker / Lender:
Internal Fraud and Abuse Prevention continued…
PHE expects employees to recognize risks and exposures in their area of
responsibility, be alert for any indication of internal fraud, and contact the
C&E Office as soon as internal fraud is detected or suspected.
Any employee who is aware of an internal fraud and does not immediately
report it will be subject to disciplinary actions. Employees who report
suspected fraudulent activity in good faith will be protected from reprisal
and retaliation. The identity of the individual conveying information will
remain confidential to the extent possible within the legitimate needs of
the law and the investigation.
Our Responsibilities as a Mortgage Banker / Lender:
Proper Marketing Practices…
Superior products offered at a reasonable price with superior customer
service are PHE’s primary marketing tools. It is against PHE’s Code of
Business Conduct to use deceptive, misleading, or unethical methods to
obtain business from customers.
Specific laws and regulations govern Unfair, Deceptive and Abusive
Practices (UDAAP) under Section 5 of the FTC Act. PHE performs due
diligence to mitigate UDAAP occurrences, including misleading or unfair
marketing practices. Questions in this area should be referred to the C&E
Office.
Protecting You at Work:
Equal Employment Opportunity…
To ensure a safe, supportive, respectful workplace, we have policies on
employee relations issues, three of which are summarized as: Individuals
with Disabilities, Sexual Harassment, and a Drug-Free Workplace. You may
find details on these and other issues in the PHE Employee Handbook.
Report any suspected violations or questions about these issues to your
supervisor. If you prefer, talk to your department head or the Equal
Employment Opportunity (EEO) compliance officer in Human Resources.
Protecting You at Work continued:
Individuals with Disabilities…
PHE complies with the Americans with Disabilities Act and related state
laws. We are committed to recruiting, hiring, developing, and retaining
qualified individuals with disabilities, and will review requests for
reasonable accommodation from qualified employees or job applicants to
perform the essential functions of the job.
Sexual Harassment…
We are expected to treat each other with professional respect and
courtesy. Any form of sexual harassment in the workplace is prohibited,
whether by a supervisor manager, co-worker, or any other employee or
consultant. Those who engage in sexual harassment will be subject to
disciplinary action, which can include termination.
Protecting You at Work continued:
Drug-Free Workplace…
Any activity related to the unlawful possession, manufacture, distribution,
dispensation, or use of a controlled substance in the workplace is
prohibited. This applies to activities that occur anywhere on company
property or while on work time outside the workplace. Any employee who
engages in prohibited activities will be immediately suspended without
pay pending an investigation and final decision on disciplinary action.
Depending on the circumstances, PHE may terminate an employee for the
first offense.
Compliance with the Code:
Failure to comply with PHE’s Code of Business Conduct will result in
disciplinary action. Disciplinary action may include suspension,
termination, and reimbursement to the company for any losses or
damages resulting from the Code violation. Anyone charged with a
violation of the Code will have the opportunity to explain their actions
before any disciplinary measures are taken.
Disciplinary action will be taken when:
 An employee authorizes or participates in actions that violate the Code.
 An employee deliberately provides misleading information about
violations of the Code.
 A supervisor’s or manager’s actions reflect poor judgment, inadequate
supervision, or lack of diligence regarding a violation of the Code.
 Anyone who retaliates, directly or indirectly, or encourages others to
retaliate against an employee who reports a violation of the Code or
participates in an investigation of a violation of the Code.
The Code will be enforced at all levels, fairly, and without prejudice.
A Message From
Your C & E Office
Dear Fellow PHE Employees,
Thank you for reading PHE’s Code of Business Conduct. The Compliance
& Ethics Office hope that this Code reinforces the importance of
conducting our business with integrity and honesty.
The Code ends here, but the journey continues…
We all have a personal responsibility to comply with this Code and the
laws, regulations, and company policies that govern our business. It is our
responsibility and duty to ask questions or raise concerns if we encounter
possible violations of this Code, misconduct, or unethical behavior. Talk to
your manager, the Compliance & Ethics Office, or Human Resources when:
• You need advice.
• You don’t know the proper
course of action.
• You believe someone has
violated the law or our
policies.
• You believe someone has
acted unethically.
• You may have been involved
in misconduct.
Message continued:
The Compliance & Ethics Office is here for you when you have a question
about compliance, when you see a potential compliance incident, or when
you have a compliance concern.
 Email us at: [email protected]
 Call us at: 1-615-872-0220 x603 for your questions.
If you wish to contact us anonymously, please call the C&E Hotline at:
 Email at: [email protected]
 Call at: 1-615-872-0220 x191 to leave anonymous voicemail.
The hotline is available 24hours a day, seven days a week.
Sincerely,
Your C&E Office
Bobbie Adams, Brian Dutton, Cosmo Zaharof, Donna Thompson,
Dottie Stump, Rebecca Gonzalez, and Tracey Branson.