Brokers call for standard policy forms

Brokers call for standard policy forms

Brokers call for standard policy forms Following one broker’s legal victory over a flighty client, industry players are calling for standardized file agreements

“Correct me if I am wrong but part of the problem is no standardization. We should … be moving in the same direction with some of our policies and standards; [there is] no reason why we can't have a standard agreement for all clients to sign regardless of company,” Omer Quenneville, a broker with Centum Regal Financial, wrote in the forum. “Then it will be up to service to separate us from one another and the banks and I think we can do a much better job than the banks any day.”

Quenneville’s comment was in response to a recent ruling in favour of mortgage broker Graeme Moss, in a case in which his client refused to pay the agreed-upon $2,911 broker fee for a private mortgage.

Broker fees are common when dealing with private mortgages, which often require a great deal of effort on the broker’s part.

Moss won the case and was awarded the original broker fee as well as legal fees. He credits the contract put together by his legal team with helping him enforce the fee.

And while brokers are applauding Moss’ victory, many argue he should not have had to go to such lengths.

“We need to demand the protection that is readily provided to other similar industries. I am satisfied that Mr. Moss won his case, although … it is unfortunate that he had to go to those lengths; as a singular Broker he is in the right,” Julie Stamp, a broker with Dominion Lending Centres Altra, wrote in the forum. “However, as it is not an industry standard, it could negatively impact his business.”
  • Mal Eccles Secretary IMBA 2016-07-05 9:28:33 AM
    The IMBA 2016 Policy and Procedures Manual has a section dedicated to the Forms you need to run your Mortgage Brokering activities, including a client Acceptance Agreement (although not tested in court) meets the legal requirements required to enforce payment by a client wishing to cancel their contract.
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  • Victor Simone 2016-07-05 9:54:08 AM
    FSCO has no standard forms, but the onus is on the brokerage to meet the FSCO requirements. This decision offers more protection since I can have wording in place to meet our risk management objectives. I know what I need to do, and keep it the way it is.
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  • Ron Butler 2016-07-05 10:37:49 AM
    I think that brokers need to wrap their minds around what FSCO or FICOM or any of the other provincial regulators are. When you speak to them they will all tell you the same thing: we are a consumer protection agency!! That's what they are: end of story. They could care less what regulations we want to protect US. They are here to protect the public. We need to understand that.
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