New round of regulations for Ontario brokers

New round of regulations for Ontario brokers

The Financial Services Commission of Ontario (FSCO) rang in the New Year with a second set of regulations for the Mortgage Brokerages, Lenders and Administrators Act, which was first implemented last July. 
“You never want regulation for the sake of regulation,” said Jim Murphy, CAAMP president. “Obviously we’ll have to see how the FSCO monitors this and enforces the rules, but a number of these things are positive because they raise the bar of professionalism.”
Enhanced disclosure is a key component to the new regulations, which require mortgage professionals to provide borrowers with a disclosure statement with information on the cost of borrowing. There are also new rules regarding advertising and public relations, where a license number is mandatory on all promotional materials, including business cards and radio ads.
Regulations that came into effect in July included licensing requirements for all mortgage agents, brokers, brokerages, and administrators, as well as new education requirements and mandatory errors and omissions insurance coverage.
CAAMP has released an 80-page “best practices” manual and is holding information sessions to educate mortgage professionals about the new act.
3 Comments
  • RICHARD GOODMAN 2009-01-22 12:41:00 AM
    FSCO IMPOSES THE NECESSITY OF AN AUDIT FOR ADMINISTRATORS
    AUDITS PROVIDE ONLY CONFIDENCE (MAYBE) - NOT ASSURANCE
    BERNIE MADOFF WAS AUDITED DAY AND NIGHT AND NO ON FOUND ANYTHING EVER - HE CONFESSED
    AUDITS ARE A VERY COSTLY WASTE OF DIMINISHING DOLLARS - A COST THAT ULTIMATELY WILL BE BORNE BY OUR LENDERS AND BORROWERS
    AND, THE BOTTOWM LINE - NO ONE IS ANY THE WISER
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  • Bob Tracz 2009-01-22 1:25:51 AM
    FSCO gives federally regulated banks an unfair advantage since the bank or its mortgage specialists are not held to the same standards of diclosure, education, licensing or public relations. This unfair advantage, combined with challenging financial times leads me to predict that the banks will regain ground lost to the mortgage brokergage industry.
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  • Concerned Broker 2009-01-22 4:59:17 AM
    Regardless of this unfair advantage CAAMP continues to support the Banks and their employees including extending Road Reps AMP designations even though they are NOT held to the same high standards that the Brokerage Industry is. Bank Reps can charge higher rates, cross sell credit cards and bank accounts without any recourse what so ever. If they are not charging higher rates (when they can) why do you think there is such a thing as a posted rate anyway?
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