NAMO - Terms of Reference of the Ombudsman





1.	The Ombudsman is empowered to receive and investigate complaints from any of the following sources:

	1.1	A natural or juristic person who has, directly or through an authorised agent, employed the services of a member of the National Association of Mortgage Originators (NAMO) to procure from a recognised mortgage lending financial institution a loan or loans on security of a first or further mortgage bond over residential property; or

	1.2	A mortgage lending financial institution which conducts the business of mortgage lending, entertains applications in the nature of those envisaged in paragraph 1.1 above, grants loans to successful applicants and has written Contracts with the NAMO member who/which is the subject matter of the complaint; or

	1.3	An accredited member of good standing of the National Association of Mortgage Originators acting in the best interests of a mortgage consumer, or a mortgage lending financial institution and generally in the best interests of the Association,

		where the complaint:

	1.4	Alleges that a member of NAMO has acted in breach of the Code of Conduct for mortgage originators to which such member is bound; and

	1.5	Which has been referred to the Ombudsman by NAMO which is satisfied that the complaint is bona fide, material and falls within the terms of reference of the Ombudsman; and

	1.6	Which has been referred to the relevant member for resolution but has, within a prescribed period of time, failed to be resolved to the satisfaction of the complainant; and

	1.7	Which prima facie appears to have:

		1.7.1	constituted a breach of the Code of Conduct by a NAMO member; and

		1.7.2	infringed the legal rights of the complainant; and

		1.7.3	caused actual financial loss to the complainant; and

		1.7.4	arisen from the conduct of the business of a mortgage originator and the rendering of the services contemplated by such mortgage originator as defined in the Constitution of NAMO.

	1.8	Which has been submitted through NAMO to the office of the Ombudsman in a form and in a manner which complies with procedural rules determined by the office of the Ombudsman in consultation with NAMO from time to time.

2.	In investigating and addressing any complaint submitted to the Ombudsman he/she will determine whether, and the extent to which, a member of NAMO has acted in breach of the Code of Conduct, or has infringed the legal rights of the complainant thereby causing actual financial loss to the complainant.

3.	The Ombudsman is empowered to settle the complaint to the satisfaction of the NAMO member and the complainant without prejudice to the legal rights of the parties to pursue the resolution of the dispute in a Court of Law or otherwise.

4.	The Ombudsman is empowered to make compensation orders not exceeding R50000.00 (fifty thousand rand) which if not observed or honoured by the member will have the sanction contemplated in the Constitution of NAMO but will be not be legally binding on the parties or prejudice their legal rights.

5.	The Ombudsman will, in consultation with NAMO, establish rules and procedures to receive and address complaints in a manner which complies with the principles of natural justice and which give rise to such complaints being handled expeditiously and effectively.