IMBA Overviews New FSCO Rules

IMBA The Independent Mortgage Brokers Association of Ontario (IMBA) has put out an excellent interpretive document summarizing several new rules being introduced by FSCO.

Here’s the link

If you’re an Ontario mortgage broker, have a read through it.  These rules will take effect on Thursday.

Here is a small sampling of things for brokers and agents to remember:

  • Mortgage agents can no longer call themselves anything other than “Mortgage Agent” or “Agent” when doing business in Ontario.
  • The authorized name and licence number of a Broker or Agent’s Brokerage must be prominently displayed on all promotional materials.
  • You must disclose if you are receiving a finder’s fee, bonus, basis points or any other remuneration on the mortgage, and the method of calculation of these
    payments.
  • You need to disclose the number of lenders your Brokerage acted for in the previous fiscal year.
  • The cost of high ratio mortgage default insurance will no longer need to be included in the cost of borrowing.
  • You must disclose any and all material risks of a particular mortgage and clearly establish why the mortgage you recommend is suitable for the client.

More information can be found on IMBA’s Mortgage Legislation page.

FSCO is Ontario’s regulator of the mortgage brokering industry.

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