Mortgage professionals in British Columbia are poised to submit a position paper to the province’s Ministry of Finance endorsing a self-regulated industry similar to that of Alberta.
“We will be recommending self-regulation,” said Samantha Gale, CEO of the Mortgage Broker Association of British Columbia. “We are assessing the possibility of a council-type regulating body similar to that of RECA (Real Estate Council of Alberta) in Alberta.”
B.C.’s Ministry of Finance will soon be reviewing the province’s Mortgage Broker’s Act which provides a framework for the registration and regulation or mortgage brokers in B.C. The review is geared towards identifying and addressing legislative aspects that may expose consumers to financial risk or “create undue inefficiencies in the market,” according to the ministry. The ministry has given all parties concerned until February 28, 2013 to submit their comments and suggestions electronically to: firstname.lastname@example.org
Gale said the MBABC and CAAMP have been working on a proposal that primarily deals with structural changes and consumer protection issues.
Also included in the structural component is the determination of a harmonized terminology covering broker designations.
Among the more important items in the consumer protection component is the proposal for a mandatory errors and omissions insurance for mortgage brokers.
“At the moment, there is no mandatory E&O for brokers in B.C,” said Gale. “Mandatory E&O is a trend we are seeing in other provinces and we believe it can better protect consumers.”
Gale said the MBABC is pushing for self-regulation in its response paper because the association believes that mortgage professionals are at a better position to develop and enforce rules governing their industry.
“Mortgage brokers can provide regulations that are more in tune with the industry realities,” she told MortgageBrokerNews.ca. “Mortgage professionals are also more sensitive to the complexities of the industry and can enforce these regulations better.”