“As some of you know, the government in BC is in the process of implementing changes to disclosure of remuneration requirements for mortgage brokers,” Samantha Gale, MBABC CEO, said in an email sent to MBABC members, which she shared with MortgageBrokerNews.ca. “Please read our petition and sign it to let government know that consultation with industry is required on this issue.”
FICOM is putting forth a new interpretation of a regulation that requires mortgage brokers to detail to clients how much they earn from lenders on deals.
And while MBABC is arguing the regulator has not properly consulted the industry, FICOM recently told MortgageBrokerNews.ca that it is, in fact, working with various organizations. Including the MBABC.
“We are actively consulting with MBABC, CAAMP and directly with leaders in the BC mortgage broker community on implementation,” Chris Carter, Deputy Registrar of Mortgage Brokers at FICOM, wrote in an email to MortgageBrokerNews.ca. “We are mindful that industry members may need to make adjustments to respond to the new requirements.
“Given these ongoing consultations, it would be premature to identify a precise implementation date at this stage.”
According to Gale, the MBABC is not happy with the new interpretation of the legislation.
For their part, brokers are torn on the updated interpretation of the legislation.
“What we make on our transaction is our business and ours alone. Maybe the party who thinks this is a good idea should tell everyone what they make,” Bart Durrant, a mortgage associate with Dominion Lending Centres Key Financial, wrote in the comments section of MortgageBrokerNews.ca. “Why not have everybody who earns a buck disclose and then we wouldn't have to put up with this nonsense.”
Others, however, have been more welcoming of the change.
“This is the same type of disclosure that financial planners are going through with mutual fund fees; it will mean that we will need to know what our value proposition is and make that clear to the client,” another commenter wrote. “It also would bring to light if we got paid more on one product or institution versus another.
“I think it is good for the sustainability of our industry, long term.”
MBN
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