Provincial mortgage broker regulators are teaming up to create a national body, the Mortgage Broker Regulators’ Council of Canada (MBRCC), in an effort to bolster consumer protection and improve standards.
The new association of regulators includes representatives from the nine provinces that currently have legislative and regulatory frameworks governing mortgage brokers or have an interest in developing one; BC, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia and Newfoundland & Labrador.
In creating the MBRCC, the group indicates that it is seeking to improve, and promote the harmonization of, mortgage broker regulatory practices. It will also work to identify trends and address common regulatory issues.
“It is critical to work more closely together now,” said Kirk Bacon, chair of the MBRCC. “Mortgage risks are becoming increasingly prevalent, the market is growing more complex and many regulations need to be modernized to keep up.”
The MBRCC says its strategic plan for 2012-2015 includes the development of competency standards and curriculum requirements for mortgage brokers. It’s also committed to assessing practices that ensure mortgages are suitable, and will review the information consumers receive about the material risks involved in a mortgage.
“We believe the next three years will bring about positive changes not only to protect mortgage consumers in Canada, but also in industry standards and professionalism,” Bacon added. “The MBRCC looks forward to working closely with consumers, industry and other interested stakeholders in bringing these changes to fruition.”