Mortgage Brokering – News you need, volume 9

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Dear mortgage professionals,

Global economic uncertainty, driven largely by US tariffs, ongoing geopolitical events, and climate change continue to erode confidence in Ontario’s housing market.

This instability has many potential homebuyers sitting on the sidelines looking for solid advice and direction. This environment calls for extra care when advising clients, especially those who are less financially resilient.

Brokers and agents must ensure their advice meets the client’s needs and that they provide the information required to allow consumers to make an educated decision about their mortgage product.

This is also why FSRA conducts sector exams. Their purpose isn’t primarily to look for wrongdoing or single out the riskiest firms. Instead, they give us a pulse check on how well the sector understands and implements our guidance, where firms may be struggling, and where more support or clarification from FSRA may be helpful.

This work ultimately benefits the mortgage brokering sector by helping build and maintain consumer trust. We encourage brokers and agents to leverage these insights and to proactively identify areas of improvement to help them better serve their clients.

Mortgage brokers and agents can offer critical advice to help consumers cope at a time of uncertainty and volatility. FSRA is here to partner with the brokering community to raise the bar on conduct and ensure continued consumer confidence in the sector.

In this edition of the newsletter, we’ve prepared a selection of articles to inform the sector of what we’ve been seeing in our recent exams, in the sector data we receive, and developing trends based on our engagement with the industry. Please take a few minutes to read the newsletter and our other publications and consider how this input could assist you in your work with consumers so that you can better help them navigate this difficult economic environment.

As always, we thank you for your continued efforts in ensuring a safe, strong and vibrant mortgage brokering sector in Ontario.

Antoinette Leung
Executive Vice President, Market Conduct

Gina Stephens
Director, Mortgage Broker Conduct

It’s more important than ever for mortgage professionals to ensure consumers are making informed decisions. However, FSRA found that borrowers are often not fully informed about the true cost of their mortgage. Read on to learn more about our preliminary findings and what they mean for your business.

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At this point, getting attacked is likely a question of when, not if for most firms. That’s why understanding your responsibilities, knowing what information you possess, and preparing for potential breaches is critical to protect yourself and your clients.

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FSRA found that some licence holders assume all institutional lenders automatically qualify as a designated class of investor or lender. Being a designated class means that some disclosures are not required during mortgage transactions. However, assuming this status without verifying it can put both your business and your clients at risk. Read on to learn more about your disclosure responsibilities.

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FSRA has found that some mortgage administrators are performing regulated activities without having a mortgage brokerage licence, even though this licence is required. Conducting activities without having the appropriate licence puts you and your clients at significant risk. Read on to learn what you can and can’t do as an administrator and how to stay compliant.

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As mortgage professionals, you are a main line of defence in preventing money laundering. That’s why it’s critical to report suspicious completed or attempted transactions to FINTRAC.

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