MORTGAGEBROKER mbabc.ca summer 2015 | 19
letters to the editor
flippers, most of whom are local – some are
selling via presale assignments which are virtually
impossible to track.
While statistical information gathering
is generally a good idea, provided that the
information is used for appropriate purposes,
in order to gather useful statistics, we need to
properly frame the issue. e citizenship form
which was used by the BC Land Title office many
years ago likely wouldn't give us much useful
data. is is obviously a complex issue. BCREA
has recommended that the government monitor
the flow of foreign investment in housing by
attaching a residency declaration somewhere in
the land transfer form process in order to gather
data to gain further insight into this market
segment. is may be a reasonable approach.
We ask that MBABC members weigh in on
this issue.
Written consent required to release
client information?
My agents are getting frustrated, as [the
mortgage broker to whom the submortgage
brokers are transferring their licenses] is telling
them I am being ridiculous in my requirement
for explicit client written consent to release
their confidential information to the new
brokerage for their future use. [e mortgage
broker] is advising that only a blanket letter
advising clients their information is being
moved needs to be sent, with an aer-the-fact
opt-out ability.
Being both a corporate and personal
member of MBABC, I greatly appreciate
your advice regarding [this issue] … MB
10-001 seems pretty clear to me. I am of the
understanding that I am not allowed to release
copies of client information or transfer files
to other mortgage brokers without specific
and direct written instruction from the client
themselves (or court order).
Rishel Tomlinson
CEO/Managing Broker
Custom Mortgages
Reply: e following is our view as your
association. is is not intended as legal advice.
e Registrar of Mortgage Brokers (Registrar),
as the regulator, may have a different view of the
matter.
We understand you to be indicating that
some of your submortgage brokers are changing
their registration to another mortgage broker
and the new mortgage broker wants you to
transfer documents of clients who were dealing
with those submortgage brokers. ese facts
raise two related matters:
.
What is a mortgage broker's obligation to
transfer client documents upon the request of
a new mortgage broker when a submortgage
broker changes his or her registration to the new
mortgage broker?
.
What is a mortgage broker's obligation to
transfer client documents upon the request of the
new mortgage broker when a client changes to a
new mortgage broker?
For ease of reading, we will refer to the
submortgage brokers and clients in the singular
