The Mortgage Broker Regulators' Council of Canada (MBRCC) has put country-wide industry-practice and broker-education standards on the top of its agenda, but the intricacies of a professional designation that addresses the long-simmering broker-bank rep issue will have to be tackled on a province-by-province basis.
“We will be addressing the development of competency standards and curriculum requirements for brokers across the country,” Kirk Bacon, chair of the MBRCC, told MortgageBrokerNews.ca. “But issues like broker designation being used by bank representatives are legislation matters typically handled by provincial jurisdictions.”
MBRCC members represent the nine provinces that currently have legislative and regulatory frameworks governing mortgage brokers or have an interest in developing one.
In recent months, mortgage professionals have called on their associations to use their clout to stop road reps from calling themselves “brokers.” Many brokers also feel that standards of broker education programs have fallen behind.
A standardized broker education curriculum does not mean the creation of a single body providing broker courses across the country, said Bacon.
“We want to set curriculum standards for the industry, actual delivery will still be up to the individual regulators to decide,” he said.
The MBRCC is focused on establishing a forum for the industry’s regulators to harmonize regulator practices and improve consumer protection.
“Currently there are some things in the broker industry that are allowed in one province but not in another,” he said. “A harmonized practice can provide consumers with a standard to base their expectations regarding brokers’ competency and performance.”
Bacon also said the council has received feedback from various broker associations on the MBRCC’s proposed broker education curriculum standards and will likely reveal the results in December.