Regulators hint at coming rule change

Regulators hint at coming rule change

Regulators hint at coming rule change FICOM will soon implement more rigorous disclosure rules for mortgage broker in British Columbia, according to the MBRCC; much to the confusion of one leading industry player.

“Based on what they’ve written I’m surprised; I’d be interested in knowing what prompted the need for increased disclosure,” Steve Bucher, a B.C.-based broker with Mortgage Intelligence, told MortgageBrokerNews.ca. “In terms of who should disclose, it should be Realtors regarding … compensation for referral fees and whether they are disclosed to clients.”

Realtor referral fees have been a well-document frustration for brokers.

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.”

Martin Boyle, Policy Manager for MBRCC, couldn’t tell MortgageBrokerNews.ca what exactly that more detailed disclosure rule will entail.

“I don’t know,” Boyle said. “What I have in the newsletter is what I know.”

Calls to FICOM have not yet been returned.
11 Comments
  • Carrie S 2015-10-16 12:59:33 PM
    FICOM needs to understand this is not just about ‘full disclosure is good’ but rather about ensuring the customer can understand the information in the proper context. It should be about the total cost of credit. That's what customer cares about and that's what they want to compare. Its one thing for the regulator to repeatedly make bad decisions, it is quite another for them to make them like they are royal proclamations. Get out of your offices and talk to us.
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  • F Carlton 2015-10-16 1:22:00 PM
    How come no one from FICOM has talked to us about this before deciding it is the way to go. It may keep their government office in business, it will kill our business. They need to check with us why this is the case.
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  • Drew C. 2015-10-16 1:31:36 PM
    Don’t hold your breath on getting a call back from FICOM. They never call back. If you are one of the lucky few, don’t expect them to answer anything other then basic, basic, basic questions like what forms to submit, what button to push on your keyboard to submit an electronic form or the fees for submitting a form. It becomes pretty clear pretty quick that they just don’t have the answers.
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