MBABC takes fee disclosure concern to regulator

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In a letter to The Registrar of Mortgage Brokers, the MBABC is voicing its disagreement with upcoming changes around fee disclosure requirements in British Columbia.

“… we feel compelled to convey concerns expressed by our members. The sentiment is that government should consider changes such as the ones proposed openly and transparently,” Samantha Gale, CEO of the Mortgage Brokers Association of B.C. said in the letter. “As well, the process should include proper consultation from stakeholders (properly representative stakeholders where full consultation is not practical).

“The need for the change and the legal authority for making the change should be made evident. Members have expressed concern that this has not been done in this case.”

The letter, dated October 9, was obtained by MortgageBrokerNews.ca. It argues the Registrar does not have the power to make the intended changes; the changes are unwarranted; and detailed compensation actually harms mortgage consumers.

The Mortgage Broker Regulator’s Council of Canada recently released its autumn newsletter, and in it mentioned FICOM’s plans to change detailed disclosure for mortgage brokers.
“FICOM is preparing to require brokers to provide more detail regarding compensation,” the council said in the newsletter. “The additional information is intended to shed light on the incentives and compensation structures for mortgage brokers.”

Gale says FICOM has not released any information about what the change would actually constitute.

“The problem is they have not made a clear statement about what this is,” Gale told MortgageBrokerNews.ca “I’ve heard from Chris Carter, deputy regulator for FICOM, that it’s about fee disclosure.”

Gale says the regulator has received her letter, but the upcoming change is a “done deal and they’re going to go ahead (with it).”

Calls to FICOM Thursday and Friday were not returned.
 
  • Dustan Woodhouse on 2015-10-16 3:47:21 PM

    And so enters yet another challenge for the Broker.

    Question, will the Bank rep (MMS) channel who are compensated in a very similar fashion be subjected to this same disclosure?

    Why single out one channel only?

    Explaining to clients the nature of being self employed, having zero health benefits, pension, vacation pay, and carrying all the costs of rent, telephone, computers, etc. along with the time invested daily on files that fail to complete should be a barrel of fun.

    Not productive, and not beneficial to the consumer unless the picture is crystal clear to them across all channels.

  • Donna Telep on 2015-10-16 6:19:40 PM

    I fully agree with Samantha Gale on this. Why are these changes being proposed? I have not heard any concerns voiced by consumers on this issue, which in my opinion, should be the only reason for FICOM to push this forward. Definitely the industry should be involved in the conversation and be given the opportunity to enter the discussion.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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