CMB MAGAZINE cmba-achc.ca winter 2016 | 41
licencerevised
THE STAFF OF THE FINANCIAL and
Consumer Services Commission (FCSC)
have been busy in the month of January
touring the province of New Brunswick with
information sessions to prepare the mortgage
broker industry for some significant
changes. In particular, mortgage brokers and
administrators in New Brunswick will have
to obtain licensing with the FCSC as of April 1,
2016. e new licensing requirements mean
that all persons who arrange mortgages for
borrowers and private investors, or who
administer mortgages on behalf of private
investors, will no longer be able to operate
without a required licence.
But exactly who is captured by the new
licensing requirements? e New Brunswick
legislature has taken a progressive approach
to draing its mortgage broker licensing
statute, with many of the provisions
mirroring those contained in the Ontario
licensing statute. In answering this question,
there are two licensing issues contained
in the rules that might pique the interest
of mortgage brokers. One is that New
Brunswick appears poised to regulate
bank reps by requiring those who place
borrowers with third-party mortgage lenders
to get licensed. Another issue is that New
Brunswick makes it clear that mortgage lead
generators are not exempted under the simple
referral exemption, and this may mean that
mortgage rate sites require licensing. We can
take a closer look at these issues.
No exemption for bank
reps who deal with third
party lenders
As expected, financial institutions, which
include banks and insurance companies,
are exempt from New Brunswick licensing
requirements for mortgage brokers.
e FCSC explains the rationale: "Banks,
including their affiliates and subsidiaries,
as well as other federally regulated financial
institutions, are subject to federal oversight."
However, the FCSC, when draing the rules,
Licensing changes will commence April 1
BY SAMANTHA GALE
NEW BRUNSWICK
Poised to Regulate Bank
Reps Who Broker
