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:
More information can be found on IMBA’s Mortgage Legislation page.
FSCO is Ontario’s regulator of the mortgage brokering industry.
You need to disclose the number of lenders your Brokerage acted for in the previous fiscal year.
This is going to be interesting for many brokers that do not shop around for the best needs of there clients, too many one stop shop and get comfortable with a particular underwriter, product, program, etc. and do not look after the true needs of their client.
I’ve seen stats of some agents who do over 80% of their business with one lender. It makes me ill because I know that lender (as big and as popular as they are) doesn’t always have the best products.
Thankfully, these are the minority of agents I’ve come across, and they will slowly be weeded out thanks to rules like this and more educated borrowers.
What does it mean by acted for? Does it mean the number of different lenders that the firm has closed deals with over the last 12 months?
Thanks for the post. This stuff is brand new and still unclear to me personally. I better defer to FSCO or IMBA on the official answer.
From what I’ve read, however, it seems like it’s the number of lenders the Brokerage closed deals with in the Brokerage’s previous fiscal year.
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