FICOM announces it is tweaking disclosure rules for mortgages originated by brokers, despite heavy criticism from the industry.
The B.C.-based regulator shared the information with MortgageBrokerNews.ca via email.
“My office is proceeding with plans to implement improved disclosure measures for mortgage brokers in British Columbia,” Carolyn Rogers, Registrar of Mortgage Brokers at FICOM, said. “We have reviewed feedback received from industry in response to the open letter sent in January and appreciate all the comments.”
FICOM put forth a new interpretation of regulation Form 10, which would require mortgage documents to explicitly state how much brokers are compensated.
It welcomed feedback from the industry and many, including broker associations and network heads, argued the change would result in a competitive disadvantage for brokers.
The change will only impact brokers in British Columbia; however, many have argued that similar rule changes could sweep across the nation.
FICOM does not yet have a confirmed implementation date.
“After those directions are made public, I would expect a transition period for implementation of at least several months,” Rogers said. “My office continues to welcome feedback from industry on implementation and I have received a number of offers in this regard that we will be following up on.”