New provincial legislation governing mortgage brokers came into effect on May 1.
Manitobans who choose to use a mortgage broker will now have access to more information as the province enhances consumer protection for home buyers through new regulations for mortgage brokers, according to Finance Minister Rosann Wowchuk.
“Unlike other mortgage industry professionals, mortgage brokers were not subject to regulation,” said Wowchuk. “Home buyers trust mortgage brokers to give them sound and objective advice on what mortgage best suits their financial situation. These rules strengthen accountability.”
The minister said the new regulations will protect home buyers by ensuring mortgage brokers are licensed and their activities are regulated.
Brokers will also be required to provide more information to consumers including disclosing:
• Any fees or commissions they receive for a mortgage referral.
• Any information about fees paid to a mortgage broker by a lender.
• Details of the responsibilities involved in obtaining a mortgage.
“A home is a family’s single biggest investment and by implementing these regulations, home buyers can now have more confidence when making their big purchase,” Wowchuk added.
Since 2009, the Manitoba Securities Commission has worked in consultation with the industry to strengthen the regulations. The Manitoba Securities Commission (MSC) is a special operating agency of the government of Manitoba that protects investors and promotes fair and efficient investment business practices throughout the province, the minister explained.
The minister said the Canadian Association of Accredited Mortgage Professionals (CAAMP) is working with the MSC to develop and administer courses related to the changes, an approach taken by other provinces where similar requirements are in place.