Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.
Issue link: http://digital.canadawide.com/i/254794
MortgageBroker mbabc.ca winter 2014 | 19 industryregulation requirements; • Reducing government expense and burden through the elimination of Ministry of Finance resources, including staff that is currently allocated to the mortgage broker program; • Providing government oversight of the SRO through FICOM by utilizing the same staff that currently oversees the real estate industry SRO in B.C.; • Making FICOM more efficient by eliminating a market conduct program that does not fit within its prudential mandate to govern financial institutions; • Keeping the oversight of FICOM over the private sector. In addition, FICOM can be more efficient by eliminating a licensing program which does not share staff and resources, such as licensing databases, with the other prudential programs administered by FICOM. It can therefore focus on what it does best. What would a self-regulatory mortgage broker body look like? MBABC proposes that a mortgage broker SRO be modelled aer the Real Estate Council of BC by creating an organization with industry representation from elected council members. Full-time paid staff would be responsible for: • Determining the suitability and licensing requirements for mortgage brokers; • Administering all licensing processes; • Investigating and disciplining licensees; • Adjudicating hearing matters; • Performing audits of licensees. In addition, by utilizing the same FICOM staff that currently provides oversight over the Real Estate Council of BC, FICOM should provide oversight of the SRO to ensure that it is meeting its mandate. Core review goals e goals of the core review would be advanced by the creation of a mortgage broker SRO by: • Enabling the industry to raise standards or more adeptly change standards through rule making and other powers to reflect new industry practices. is would enhance public protection and support professionalization of the industry; • Creating a regulatory body that has greater flexibly than government to raise fees, create rules, remove red tape and proceed with enforcement. is would allow it to possess the necessary resources to effectively regulate mortgage brokers. is enhances public protection and promotes industry growth through efficient and relevant regulatory SRO to ensure its effectiveness. is will better ensure that the SRO is protecting the public interest. As the provincial mortgage broker association which represents mortgage brokers in British Columbia, the MBABC is willing to leverage its resources to ensure that this proposal can be successfully implemented. MBABC believes there is strong support for the proposal within the B.C. mortgage industry. I have been reassured by the Ministry of Finance that the review of the Mortgage Brokers Act is still on the legislative agenda – that is good news for mortgage brokers in this province. Stay tuned for updates! n FIRST NATIONAL FINANCIAL CORP.indd 1 14-01-20 3:15 PM p14-19_Principle_Self Regulation.indd 19 14-01-23 2:00 PM