Secteur du courtage hypothécaire
Période de commentaires du public terminée
27 novembre 2020
Date de remise des commentaires
15 janvier 2021

L’Autorité ontarienne de réglementation des services financiers (ARSF) souhaite affermir les normes de conduite associées au courtage d’hypothèques en Ontario.

L’ARSF s’apprête à publier des lignes directrices en matière d’approche pour aider les professionnels du domaine hypothécaire de l’Ontario à se conformer au Code de conduite national proposé (le Code). Le Conseil canadien des autorités de réglementation des courtiers hypothécaires (CCARCH) a collaboré avec l’industrie canadienne du courtage d’hypothèques à la création de ce Code. Les consommateurs de services de courtage hypothécaire peuvent ainsi utiliser ce Code pour en apprendre davantage au sujet de leurs droits. Ils peuvent également le consulter pour découvrir en quoi consiste un service approprié.

L’ARSF souhaite obtenir des commentaires des professionnels de l’industrie et des consommateurs sur notre proposition d’approche pour intégrer le Code à notre cadre de supervision.

Cette consultation est maintenant terminée.

Le CCARCH demande aux professionnels de l’industrie et aux consommateurs leur opinion au sujet du Code national proposé que l’ARSF pourrait adopter.  

#En soumettant un contenu, vous acceptez que votre document soit publié sur notre portail de participation et utilisé dans des rapports ou d’autres documents préparés par l’Autorité de réglementation des services financiers (ARSF) et qui pourraient rendus publics. Nous avons modéré le contenu pour nous assurer que toutes les publications sont respectueuses et professionnelles. La Loi sur l’accès à l’information et la protection de la vie privée, L.R.O. 1990, chap. F.31, s’applique à tout contenu publié en ligne.

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Secteur Commentaire Date postée Trier par ordre croissant
Secteur du courtage hypothécaire
[2020-015] Paul Taylor - Mortgage Professionals Canada

Secteur des credit unions et caisses populaires
[2020-015] Bernard Brun - Desjardins Group

Le Mouvement Desjardins soumet à l'attention de l’Autorité ontarienne de réglementation des services financiers ses commentaires dans le cadre de la consultation sur les normes de conduite associées au courtage d’hypothèques en Ontario.
Pour toute information additionnelle, n'hésitez pas à communiquer avec le soussigné.
Recevez mes salutations distinguées.

Bernard Brun
[2020-015] Anonymous - Anonymous
Mortgage brokers/agents are inflating the income of clients to qualify mortgages. Apparently the trend is now to submit the deal through a mortgage specialist from one of the banks instead of submitting it through their own IDs. This act definitely put the client under a lot of stress as the client would have to earn extra since they have gotten a mortgage where they wont qualify for. This is inflating the house prices and an average Canadian is struggling to purchase a house.
Since the brokers are submitting it through another party there will be no evidence as to the crime directly connected to the broker. The client is not going to come forward to jeopardize their own mortgage and complain about the agent nor the mortgage specials.
Since mid 2017 the prices have gone nuts but I don't know how half of the population is qualifying.
I have heard from many general public that real estate agents are offering to get the mortgage deals done through other brokers and bankers by inflating the income. Their sales pitch is "rates are really low and the payments are easy". Sure the rates are low but remember the qualifying rate didn't come down.
We rely on FSCO/FSRAO and haven't seen much changes from the organizations.
I would suggest FSCO/FSRAO to collaborate with CREA/RECO and OSFI-BSFI to solve this issue. I am sure This would Help Canadians buy affordable houses. This would also let the ethical mortgage brokers to make money rather than corrupting the industry.
If this is not done, eventually more of the mortgage agents will be pushed towards committing frauds and the ethical mortgage agents will leave the industry as they wont be able to survive.
Hope we will find a solution for this matter.
Secteur du courtage hypothécaire
[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.
Secteur du courtage hypothécaire
[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.
Secteur du courtage hypothécaire
[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 ultimatly going to suffer.

[2020-015] Anoop Bungay - MQCC
Good direction.
Secteur du courtage hypothécaire
[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.
Secteur du courtage hypothécaire
[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
Secteur du courtage hypothécaire
[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

Date posted Secteur Question et réponse

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 réponse:

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

Secteur du courtage hypothécaire

Question: Questions relating to FSRA's approach to guidance with the proposed 'Code of Conduct' are outlined below:

Section “Rationale & Background”
1. Will Brokerage’s be required to produce/provide/display the code to consumers or will the dissemination of the code be the sole responsibility of the regulator?
2. Does FSRA intend on conducting periodic qualitative discussions or quantitative research with consumers as a means of regularly assessing consumer sentiment, or does it intend to continue to rely on complaints/whistleblowing as its primary means of obtaining this information?

Section “Principals”
3. Please define and provide criteria outlining what constitutes a ‘high risk’ licensee.
4. How does the regulator intend to assess the nature and extent of risks posed to consumers? What information sources will be used to determine these risks and what framework will be utilized to classify these risks?

Section “Processes & Practices”
5. Will we see a new ‘Mortgage Broker Declaration of Compliance’ prior to its implementation?
6. What will serve as the basis for the triggering of a review? Will the regulator utilize a framework in assessing the degree to which a review is necessary? What will serve as inputs for such reviews?

FSRA réponse:

1) FSRA will actively encourage mortgage brokering sector professionals to provide the Code to consumers. However, it will not be required. The Code was designed to help inform consumers of their rights during dealings with licensed mortgage brokering sector professionals.

2) FSRA uses various tools to assess consumer sentiment, including and additional to complaints and whistleblowing. FSRA’s Consumer Office conducts qualitative and quantitative consumer research, which enables consumers to provide direct input to FSRA on consumer sentiment and consumer issues. The Consumer Office has further engaged in work in consumer mapping, which helps to inform our understanding of consumers and potential consumer vulnerabilities. The Consumer Office and other FSRA projects also leverage consumer behavioural insights. FSRA also considers third-party consumer research undertaken by industry or consumer organizations. In addition, FSRA seeks input on consumer issues and consumer concerns from its Consumer Advisory Panel. The panel’s members bring a variety of expertise and experience on consumer issues. They act as an additional tool for giving consumers a voice in FSRA initiatives. Consumer advocates and experts are further represented on some of FSRA’s Technical Advisory Committees. FSRA has further engaged other public interest stakeholders. Their backgrounds include consumer advocacy, consumer and investor protection, charity, academia and law in FSRA’s regulated sectors.

3) FSRA’s supervision of the Mortgage Brokering sector is based on its statutory objects, as outlined in the Financial Services Regulatory Authority of Ontario Act, 2016. Supervision of the sector is designed to be proactive and risk-based. FSRA’s current areas of focus and an outline of the supervision approach can be found here. Licensees conducting business in one or more of these areas may be considered a higher risk (of potential consumer harm) and may therefore be more likely to be selected for examination. Additional factors which may raise the risk profile of a licensee may include:

  • Nature of the business (e.g., product types offered)
  • Size of the business
  • Geographical spread of operations
  • Licensees who are the subject of (disproportionately) high volume of complaints
  • Licensees who are the subject of media reports
  • Compliance history

4) The nature and extent of risks posed to consumers, any mitigating actions taken by the licensee(s), and past supervisory findings are all used to determine a proportionate approach to regulatory discipline and enforcement proceedings. FSRA uses a combination of information sources, including documentation and descriptions from consumers and licensees, business registration information, and other publicly available information. FSRA staff will discuss findings with licensees, in particular any findings that have caused consumer harm and/or breaches of regulatory requirements. Licensees will have an opportunity to respond and, depending on the context, explain how the licensee intends to address the concerns raised.

5) The Mortgage Brokerage Declaration of Compliance will be available to industry upon launch of the Code. The current declaration will include updated language to reflect the adoption of the Code. When applying for a new licence or when filing the Annual Information Return, the principal broker and principal representative of the administrator will be required to declare that the brokerage has implemented processes to ensure that the brokerage and its agents and brokers adhere to the Code, and to identify and address any non-compliance.

6) All mortgage agents, brokers, brokerages and administrators licensed by FSRA can be selected for a review. FSRA selects licensees for review using a risk-based approach, as outlined above (question 3). Additional information on FSRA’s approach for promoting high standards of business conduct in the mortgage brokering sector can be found here.