BY Samantha Gale
MortgageBroker mbabc.ca winter 2015 | 21
commonissues
Mortgage brokers in New Brunswick will soon have to
apply for a license to broker mortgages. e Financial and Consumer
Services Commission of New Brunswick recently published proposed
rules for mortgage broker licensing that, in conjunction with the new
Mortgage Brokers Act, will provide a regulatory framework for its
licensing program.
Harmonization of requirements and rules across each provincial
jurisdiction is a goal of both the Mortgage Brokers Council of Canada
and respective provincial regulators, as well as the mortgage broker
industry. e
MBABC therefore reviewed the proposed rules and made
comments with a view to promoting the harmonization of rules on
some common issues, including bank broker exemptions, referral
exemptions and advance fees.
Bank broker exemptions
MBABC found that the exemption from mortgage broker licensing
requirements for financial institutions confused the roles of mortgage
brokers and lenders, and should be better aligned with their respective
roles in the mortgage origination process. Brokers who arrange
mortgages are true intermediaries in the sense that they work to find
the best mortgage options for borrowers but also have due diligence
obligations to banks or other lenders – to ensure that applications are
accurate and complete. Lenders who want to diversify their business by
performing as broker intermediaries therefore need to obtain broker
licensing and comply with provincial mortgage broker requirements
and standards.
CIBC and its wholly owned licensed mortgage broker
subsidiary, Home Loans Canada (HLC)
illustrates how banks can
MBABC provides input on mortgage broker
licensing and fees in New Brunswick
•
New Brunswick
Prepares to Regulate
Mortgage Brokers
