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/505959
14 | spring 2015 mbabc.ca MortgageBroker MBABC's 2015 conference and trade show marked the association's 25th anniversary which, I'm told, makes it the oldest mortgage broker industry association in the country. Interestingly it also makes it roughly the same age as FICOM, which was established in its current form in 1989. As we both mark a fairly significant milestone in our history it seems like a good opportunity to think about how we would like the next 25 years to look. One of the things I know MBABC would like to see change in the years ahead is a greater degree of self-regulation. And it may surprise you to learn that I wholeheartedly support that idea. FICOM regulates a number of different industries and we are advocates of self- regulation in every sector. Our experience is that when self-regulation is effective, industries and individuals hold themselves to a higher standard than anyone else does. e second thing that might surprise you is that you don't need to wait to self-regulate. You can start today. To the best of my knowledge we are going to have the laws and regulations we have now for the foreseeable future. And in your sector, what exists today is a legislative framework that is 40 years old. And we all know the financial services industry, and the mortgage broker sector, have changed significantly in 40 years. is can be frustrating for both of us, working inside legislation that sometimes feels like it's lagging behind the industry. However it can also present opportunities. Self-Regulation If I wanted to see my industry progress toward self-regulation, I would view the fact that the current laws and regulations were more than 40 years old as an opportunity to consider whether I could and should hold myself and my industry to a higher bar than what is set out in the law. In other words, I would think and act like a self-regulated industry. You can put some ideas into place now so that when the time inevitably comes when you want to make the case to government that yours is an industry that is ready to self- regulate, you will be able to demonstrate that you already hold yourself to a higher standard than anyone else does. One quality you need to be a good regulator is something that we have in common with being a good mortgage broker: customer focus. A regulator's customer, whether it's FICOM or a self-regulatory body, is the public. We regulate to protect the public, not to protect the industry or to regulate competition. is is a critical role: ere is no more important ingredient in the health and success of your business than public confidence, so a good regulator filters every decision he or she makes through the lens of public confidence. e second quality to being a good regulator is probably not one we have in common with your industry. A good regulator spends a lot of time thinking about what could go wrong. Some might call this being a pessimist, a skeptic, or even a doomsayer. We prefer to think of it as being proactive. Act Like a Self- Regulated Industry Building on the conference and trade show theme of Broker for a Day, Carolyn Rogers invites the industry to be a Regulator for a Day Our experience is that when self-regulation is effective, industries and individuals hold themselves to a higher standard than anyone else does. –Carolyn Rogers