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Mortgage Broker News | 12 Jul 2016, 08:00 AM Agree 0
Have a few bad apples created a situation where more regulatory intervention is needed?
  • Paul Mangion | 12 Jul 2016, 09:37 AM Agree 0
    Venza, I don't think education will solve the problems that the broker industry has. Agents with low integrity need to be weeded out and serious enforcement and fines is the way to do this. The real estate industry has the same problems and one bad agent will eliminate the good will of of 20 great agents!
  • David O'Gorman | 12 Jul 2016, 11:32 AM Agree 0
    Educational standards need to be significantly increased,specifically mandatory continuing education.More hours, industry & topic specific, and NOT lender driven dog & pony shows.

    However I agree with Paul, education is not the sole solution. Lawyers, usually require an under grad degree & 4 years of law school/articling to become a lawyer. Most would think that is a hell of an investment in education to blow. However if you go to>Ontario>mortgage fraud you will find that 19 of the first 25 cases that appear are "The Law Society of Upper Canada v. A lawyer", LSUC trying to legally remove a lawyer 's ability to practice. Their own "trade association" attempting to clean house.

    As an expert witness I often see the sordid underbelly of our industry.The part that few in the industry, the public & often the regulators, ever see. I see our associations give awards to companies/indivuals who cost the E&O insurers 10's of millions of dollars, because of lax supervision, non-compliance, incompetence, negligence. & fraud. Ultimately that cost is past on to every brokerage license holder.I don't see any of our associations "cleaning house".

    I don't pretend to have the definitive answers as to what the industry needs.I would require increased regulatory accountability, where the provincial equivalent of the Principal Broker is required to be a director of the brokerage. How can you change policies & procedures if you are just a paid employee? Yet that is the corporate structure of one of the larger brokerages in the country.
  • Ron Butler | 12 Jul 2016, 11:47 AM Agree 0
    David, great comments, it is amazing when you come to learn about some of the litigated matters that major brokerages have lost and the total lack of any real supervision of their agents and brokers.

    Just a note, law school in Canada does not absolutely require an undergrad degree in all cases and some law students can take the Bar Exam in Ontario after about 26 months of law school depending on the chosen course load.
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