Independent broker, Paolo Di Petta, will be meeting with Steven Del Duca, Liberal MPP of Vaughn and the man appointed to oversee the review of the MBLAA, on Thursday to discuss potential changes to the act – and he wants to collect and present broker feedback after a letter sent by CAAMP to the MPP did not represent brokers’ best interests.
“CAAMP already wrote a letter to the MPP about it - and it doesn't look like they're looking out for brokers,” Di Petta told MortgageBrokerNews.ca. “It seems they support exemption for bank employees to be licensed; of course their members are both bank employees and brokers, but they've been trying to control broker licensing/education for years - so it seems like they're attacking brokers from both ends - making it harder to be a broker while keeping it easy for our competition.
“I think it should be harder across the board, especially, since as we've seen on MBN, banks don't always play by the rules.”
The letter, which was sent to Steven Del Duca was sent by CAAMP “on behalf of (its) 12,000 members across Canada, and 7,000 members in Ontario” to offer its comments on the five year review of the MBLAA. However, Di Petta believes the letter’s recommendations won’t benefit brokers. It states:
“CAAMP has taken the position that if they are selling the product of their employer, they are not brokering and do not need to be licensed,” the organization said in its letter to the MPP. “We believe that such a measure would also not stand a legal challenge.
“However, we believe strongly that when such employees are placing mortgage products with a lender who is not their employer, they are brokering and should be covered by the provisions of the MBLAA legislation including licensing,” they continued.
Di Petta also takes umbrage with CAAMP’s recommendation to raise the minimum mortgage amount – especially concerning private deals.
“Private deals require more time, and when a deal falls apart in the 11th hour, that's a big hit to a broker's reputation with lenders, lawyers and anyone else working on the deal,” Di Petta said. “Due to the smaller volume of deals, one deal with a private lender makes up a larger percentage of total annual deals with that lender, and of course, the broker's reputation and the availability of that lender to the broker in the future.”
If you have similar or other concerns, contact Di Petta before his meeting with Del Duca to ensure your voice is heard.