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New FSCO Regs Start January 1

FSCO FSCO, Ontario’s mortgage regulator, has several new regulations taking effect on January 1, 2009.

According to IMBA, the new rules cover:

  • Use of names and licence numbers in public relations materials
  • Disclosure regarding role and relationships of brokerage
  • Disclosure of fees receivable and payable
  • Agency and Lender as major customer disclosures
  • Disclosure to borrowers in new format
  • Advertising
  • Duty to verify customer’s identity
  • Restriction on advance fees for mortgage loans less than $300,000 (still $200,000 until January 1, 2009)
  • Policies and procedures
  • Agreements regarding non-monetary compensation
  • Suitability of mortgage and material risks (This is a great reg that will further enhance professionalism in our industry. Ideally, “suitability” would be better defined in the Act, but maybe FSCO will release an interpretation letter with more specifics. In the meantime, CAAMP has their own interpretation below.)

If you want to familiarize yourself with the new rules, here is CAAMP’s overview of them:  Link

Penalties to mortgage agents for non-compliance can reach up to $10,000.