We believe in meaningful disclosure. We believe these changes will result in unintended consequences such as:
Canadians having less choice, higher pricing, less options in choice of mortgage products and less flexibility in who they choose to deal with.
This creates greater borrower confusion, misunderstanding and distraction from the far more important terms and the conditions of their mortgage.
Distortion of the borrower’s perception of costs.
Borrowers wrongly concluding that it is more expensive to use a mortgage broker than an Institutional lender.
This will disadvantage the broker channel in comparison with lenders who do not have to make a similar disclosure of costs.
Who does this affect?
Most importantly - Hard working Canadian families who are unaware of this uneven playing field, who will immediately have less choice, higher mortgage costs, less competition to the banks and lack of freedom with their mortgage options.
This will affect every Mortgage professional in Canada and their families. Although this is a BC initiative, FICOM has stated they would like to be leaders in this initiative and hope that other regulators will follow. We support equal regulation inclusive of banks, brokers and other channels - but not ones that have little to no consultation or a clear understanding of the consequences.
Lenders - If you currently do business with the mortgage broker channel this will affect you and all of your staff.
Suppliers, technology, insurers and all others who currently work within our Industry and are supporters of the Mortgage origination channel.
How can the Industry help?
Don’t downplay the significance of this issue. It is not overblown or insignificant. it is a very real challenge that we will have to work through with FICOM to come up with a solution that works for all.
Reach out to MPC (Mortgage Professionals Canada, formerly CAAMP
) to let them know you would like to be part of our response.
Reach out to your Network that you are currently licensed under for further direction as all major networks are unified and working together.
Please be very positive in your response and online forums, as it’s important to respect and appreciate the regulators and their position. Rhetoric, rude commentary, indifference and anger works against us and is not representative of this incredible industry and who we are, regardless of your frustration levels.
Good public policy comes from proper consultation with industry, and cannot be rushed in order to ensure consequences are fully understood.