Mortgage Brokering Sector
Comment Due Date

The Financial Services Regulatory Authority of Ontario (FSRA) wants to enhance conduct standards for mortgage brokering in Ontario.

FSRA is releasing a proposed Approach Guidance to help Ontario mortgage professionals comply with a proposed National Code of Conduct (Code). The Mortgage Broker Regulators’ Council of Canada (MBRCC) has been working with the Canadian mortgage brokering industry to develop this proposed Code. Consumers of mortgage brokering services can use the Code to learn more about their rights. They can also use it to find out what appropriate service looks like.

FSRA is seeking industry and consumer comments on our proposed approach to incorporating the Code in our supervision.

We invite you to submit feedback until January 15, 2021.

MBRCC is consulting with industry and consumers on the proposed National Code that FSRA may adopt.  

#By submitting your content, you agree to have your materials posted on our engagement portal, used in reports and other materials prepared by Financial Services Regulatory Authority of Ontario (FSRA) that may be shared with the public. Content is moderated so that all posts are respectful and professional. The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, applies to all online content.

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Sector Comment Date posted Sort ascending
All Sectors
[2020-015] Anoop Bungay - MQCC
Good direction.
December 15, 2020
Mortgage Brokering Sector
[2020-015] Joseph Filice - Cirrius Finance Corp.
My background is mechanical and systems engineering. I have been involved in mortgage brokering and real estate since 1985. Currently semi retired. Started out with having to sign one document known as a statement of mortgage. Now a book is written for every file. The codes of conduct you want to propose is only going to make the situation worse.
To solve the problem one needs to understand the problem and how it got to this point. I have identified this problem and the main component is intent. If the intent is not pure one party is ultimately going to suffer.

December 1, 2020
Mortgage Brokering Sector
[2020-015] Michael Lau - First Financial Lending
I have been a broker for over 10 years and in the industry for over 20 years, with capacity in federally chartered banks to a small brokerage and as well as national brokerage houses. I support a codified rights for the industry with an emphasis on a balance of responsibilities. I have seen way too many "abuse of rights" that infringes on the professionals. There needs a clear "code of responsibilities" from the consumers as well; as rights without responsibilities is a one-sided abuse. Examples such as using obscene language, degrading professionals, harassments would not and should not be tolerated in the name of rights; and I have personally experience all of the above in the name of consumer rights.
November 30, 2020
Mortgage Brokering Sector
[2020-015] Prashant Suchak - CENTUM DUNLOP MORTGAGES INC
i believe a unified standard code of practice for the mortgage sector is a good concept. as is a uniform education level nationally that would allow a qualified mortgage broker to work from Newfoundland to BC. if the sole purpose of this exercise is to protect the consumer then it will only address one side of the coin. it will not achieve its purpose unless the major banks and their mortgage advisors are held to the same standard as independent mortgage professionals. We as mortgage brokers abide by one set of rules and banks and their reps are making up their own rules. lack of disclosure to borrowers vis a viv standard vs collateral mortgage. APR, mortgage registration amount on total vs amount borrowed. If there is a violation, are bank reps ever reprimanded? if you want to truly protect the consumer and we all do, them license mortgage agents who work for lenderd and hold them up to the same standard as us

November 30, 2020
Mortgage Brokering Sector
[2020-015] Jacqueline Hilchuk - I Finance Construction
Since mortgage brokering came under statute law, more violations and troubles have risen in the industry. Before statute law, we were experiencing the biggest explosion of credit imaginable. Banks, Alternative lenders aggressively sought loans, marketing was directed at us to coach the borrowers how to lie about income, how to get approved, it was OK as long as it was self declared. Then we saw you come down with new forms, new disclosure requirements. We don't have nearly as many brokers anymore. Yet YOU FAILED the depositors of Pace Credit Union, you failed to investigate the board of directors and what has been done about that? Crickets. So please, LOOK AT YOURSELVES before you bear down on brokers. People have the right to make money, take risks and lose money. It's not our conduct that is the concern. It's very difficult to get approved for money right now. Maybe you should look in the mirror.
November 30, 2020
Mortgage Brokering Sector
[2020-015] Shibashish SARKAR - RateShop Inc./Carte Financial Group
Any measure to improve and strengthen compliance is welcome. However, I don't understand why the Mortgage License Renewal Fees is so exorbitant? Just compare the Mortgage License Renewal Fees with the Life License Renewal Fees! And again, that fees is for two years! Besides, a lot of Financial Advisors are now multi-licensed and they are liable to pay multiple fees. If the fees are so high, an Advisor may be forced to compromise with ethics just to keep the licenses! Please introduce One Composite License Renewal Fees and please keep the amount within reach of the Advisors. Advisors are not born dishonest, they are made dishonest by the situation they exist in.
November 28, 2020
Mortgage Brokering Sector
[2020-015] Steven Tulman - Clover Mortgage Inc.
I think this is a FANTASTIC idea and very much needed for our industry. Far too many brokerages and brokers are under-qualified, under-trained, and providing mis-information and the wrong guidance to customers that is NOT in the best interest of the customers. This change can't come fast enough. The reputation of our industry needs to change, and customers need to be able to get the right advice and guidance from mortgage brokers who take their job and responsibilities that come with it seriously.

You've got the full support of my brokerage on this!

Thank you,

Steven Tulman
November 27, 2020
Date posted Sector Question and response
All Sectors

Question: Dear Sir,

I have observed something very strange in Mortgage Industry. The fact that Mortgage agents/Brokers are allowed to reduce their commission to get a reduced rate for Clients with the logic being that it is for the betterment of consumer but an Insurance agent is not allowed to discount their commission or pass on a part of commission back to Clients for fear of mis-selling even though that would reduce the ultimate cost of product for consumer just like mortgages. Why would the authority feel that there is no mis-selling in mortgage industry by sharing commission is beyond me.

A large number of deals, specifically by online mortgage brokers are just relying on rate comparison and are doing a dis-service to the customers who are being pushed to concentrate on lower rate rather than product features.

My humble request is to please give thought to abolish this practice in mortgage industry or allow the same in Insurance as well. As a consumer, I could not find an insurance agent who would reduce my yearly cost but there are plenty in mortgage industry.

Thank you for spending time reading my email.

Saurabh Garg

FSRA response:

Thank you for your submission. This is outside the scope of the proposed Approach Guidance.