What is a Mortgage?
A mortgage is the transfer of an interest in property to a lender as a security for a debt like a loan of money. Although a mortgage in itself is not a debt, it is the lender’s security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.
A mortgage lender is an investor that lends money secured by a mortgage on real estate. In today’s world, most lenders sell the loans they write on the secondary mortgage market. When they sell the mortgage, they earn revenue called Service Release Premium. Typically, the purpose of the loan is for the borrower to purchase that same real estate. The borrower, known as the mortgagor, gives the mortgage to the lender, known as the mortgagee. As the mortgagee, the lender has the right to sell the property to pay off the loan if the borrower fails to pay.

The Code of Ethics and Standards of Professional Conduct are the ethical cornerstone of CFA Institute. They are essential to CFAI’s mission to lead the global investment profession and pivotal to maintaining public’s trust in the financial markets/institutions.
Significance from Examination point of view:
Though many candidates find this topic a bit monotonous, this is single-handedly one of the most important topics for the exam. The weightage for this topic is about 15% for the level-I exam, however considering the scenario where candidate’s average score in other topics is close to the minimum passing score, the score on Ethics-related questions proves to be the key to determining whether candidate passes or fails !
Historical Background:
About 40-45 years back, the CFA exam was merely a test of one’s knowledge of ethical standards, professional conduct and testing one’s grasp of right and wrong in various business situations. In its present form, the exam has changed dramatically to test candidates’s competence in accounting, economics, quantitative methods, asset valuation and portfolio management.
Nonetheless, the Code and Standards are the ethical benchmark for investment professionals around the globe, regardless of job title, cultural differences, or local laws.