Instructions: read the ethical problem below and then apply the ethical framework to the situation. you will write your answers on the next page and upload it to be graded. be sure to review the rubric for grading requirements.

it’s 2007 and you are a mortgage broker. this means that you sell mortgages on behalf of banks. you are a leader in your industry and other brokers look to you for guidance for how to be a terrific mortgage broker.

here’s how your job works: people come to you looking to get a mortgage. these people are your clients. it is your role to work on behalf of your clients to get them a mortgage that will work well for them.

every time you sell a mortgage to a client, you receive a big bonus - extra money added to your paycheck. this means you have a big financial incentive to connect as many clients as possible with a mortgage.

you’ve noticed that more and more of the mortgages you are selling have interest rates that start out low for a few years, but then increase for the remainder of the loan. this means that a person’s monthly payment starts off manageable but then sometimes this monthly payment grows too big for him or her to pay.

most of your clients will not understand these terms of the loan written in the mortgage unless you clearly explain things. but if you explain this changing interest rate to the client, there is a chance they will not want to take the mortgage and you will not get your bonus.

use the ethical framework to work through the process of deciding what to do.

you are now going to work through the ethical framework and decide how you will handle telling your clients about these increasing interest rates.

note that to successfully complete this assignment you do not need to choose the most ethical path. you can choose any option you want to pick. the key will be to explain the thinking of a person in that situation and reflect on your choice in step 6, considering whether the choice (ethical or not) caused any harm.

your responses should give a detailed explanation of each step. you must write in complete sentences and/or paragraphs.

• step 1: identify the problem
• step 2: gather the facts
• step 3: reframe the problem
• step 4: consider your options
• step 5: plan and take action
• step 6: reflect on your choice