5. The rules are changing
Ontario brokers rang in 2009 with a second set of rules related to the new Mortgage Brokerages, Lenders and Administrators Act implemented by the province's Financial Services Commission (FSCO). Later in the year, regulatory bodies in Manitoba, Saskatchewan and Quebec all announced they would be retooling provincial mortgage broker legislation, marking a clear trend to better protect consumers.
Among FSCO's new requirements were disclosure statements for consumers and mandatory errors and omissions insurance - something the commission suspended 79 brokerages for not having after conducting a random audit in February.
"It's not easy to pass legislation and I think FSCO has made a huge move in the right direction with these new regulations," says Graeme Moss, broker/owner of Fair Mortgage Solutions in Hamilton, Ont. "I think the key word is there's more accountability, so if an agent does something wrong it goes right up the chain of command and the principal broker has incentive to make sure agents tow the line - otherwise they could lose their licence."
Moving west, the Manitoba government announced in the spring that it would introduce new amendments to its Mortgage Dealers' Act, including stricter education requirements and more disclosure. New legislation is still in the drafting process and is expected to be proclaimed in the New Year, says Manitoba Securities Commission registrar Bill Baluk. Meanwhile, Saskatchewan's Financial Services Commission completed new draft regulations in the late summer, outlining more education and on-the-job requirements for mortgage brokers.
Also switching up the rules is Quebec. CAAMP says it hopes to see new licensing requirements that differentiate mortgage brokers from other real estate professionals in place by early 2010. New rules didn't just stop at certain provinces, either. CAAMP increased the amount of education required by its members by two hours per year - something the organization says will help raise the bar of professionalism among members.
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