11 February 2013
Why don’t general rules apply to bank mortgage reps?
|Although Canadian banks work under the strict control of the government
watchdogs, not all their operations are watched so thoroughly. “The deal
is that bank mortgage reps work aside from the general regulatory
boundaries which apply to licensed professionals,”- says Samantha Gale, a
former mortgage regulator at B.C.’s Financial Institutions Commission
and now the chief executive officer of the Mortgage Brokers Association
of British Columbia.
The banks themselves develop and control all the rules, concerning mortgage rep competency, the suitability of their mortgage recommendations and of course compensation disclosure. It’s the same in Ontario, as here mortgage brokers need to give much stricter disclosure to borrowers than bank specialists…