Quebec is taking care of some housekeeping in its mortgage broker channel, addressing insurance and education as two key issues.
“There wasn’t a mandatory course to become a mortgage broker,” says Pierre Martel, the president and CEO of Multi-Prets Mortgages and a past chair of CAAMP. “We had too many people taking the exam ‘cold,’ without any practical training. Now we have five exams for 2013 specifically for mortgage brokers, and actual case studies and training.”
Prior to 2010, those aspiring to become mortgage brokers in Quebec had to take the real estate exam; then participated in follow-up training as a mortgage broker.
Martel remembers for many years that the title of ‘mortgage broker’ didn’t even exist in Quebec.
“We were called ‘affiliated real estate agents’ until 2010,” says Martel. “That has all changed, thanks to years of working in concert with CAAMP.”
Now, mortgage brokers are licensed under the OACIQ, which is a self-regulated body governed by the provincial Ministry of Justice.
Another bone of contention has been the lumping of real estate agents with mortgage brokers in matters of insurance.
Although the premiums have been adjusted – reflecting the difference in claims between the two professions – there is still no difference between the two fields of activities.
According to Martel, CAAMP is “working on trying to make a difference between the two,” but since mortgage brokers have only recently become a separate, identifiable group, the insurance industry will need time to assess exactly who the E&O premiums should be on Quebec brokers.
“For many years we were a part of the coverage for real estate agents,” he told MortgageBrokerNews.ca. “The insurance companies will need more time to assess mortgage brokers, to determine the risk and coverage needed for our industry.”