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.