“… 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.
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.