legislativeimpact
54 | spring 2017 cmba-achc.ca CmB magazine
I
t's been just over a year since New
Brunswick's Financial and Consumer
Services Commission (FCNB) enacted
new legislation to reform the provincial
mortgage industry.
Effective April 1, 2016, the Mortgage
Brokers Act and its associated regulations
required New Brunswick mortgage brokerages,
brokers, associates and administrators to
obtain a licence to practice.
Prior to that date, the provincial mortgage
broker industry was unregulated. Now, there
is a mandatory educational component and
standards of practice that apply to everyone in
the business.
Along with educational and licensing
requirements, the Act also aims to protect
consumers by setting out borrower disclosure
regulations pertaining to commission, conflict
of interest declarations and cost of credit,
among other important topics. It also prevents
brokers from charging an upfront fee in
advance of funding for both residential and
commercial deals.
But, while these may appear to be sweeping
changes, mortgage brokers in New Brunswick
told Canadian Mortgage Broker that once they
obtained their licence, it's pretty much been
business as usual.
Janice MacIver has been a broker with
Premier Mortgage Centre in Moncton for 13
years but has worked in the banking industry
since the late 1970s. She believes the new
regulations have had a positive effect on the
mortgage industry's reputation.
"I think it has elevated the level of
professionalism for mortgage brokers as a
whole," she says. "I think it's weeded out some
New Brunswick's
recent regulatory
changes have elevated
professionalism in the
mortgage industry –
otherwise, it's
business as usual
By Lisa Gordon, staff writer
HigHer
reacHiNg
