On 26 February 2021, the Mortgage Brokers Council of Canada (MBRCC) endorsed a new Code of Conduct (“Code”) for mortgage broker professionals. The MBRCC developed this plain-language Code to promote high standards of conduct to protect consumers of mortgage brokering services. The full document can be found on the MBRCC website.
The MBRCC is comprised of regulators across Canada responsible for administering mortgage broker legislation and regulating the industry in their respective jurisdictions. The Consumer Affairs Division of FCNB actively participated in the design of this Code.
MBRCC consulted with the Canadian Mortgage Brokers’ Association (CMBA) and Mortgage Professionals Canada (MPC) on the development of the Code and the Code will be used by their membership. The Code was finalized following consultation with industry in late 2020 and early 2021.
The Code reflects the common regulatory standards in Canada’s mortgage brokering industry, while recognizing that each jurisdiction has its own regulatory approach for the conduct of business. Mortgage brokers should conduct their business following these common principles, while ensuring compliance with all applicable laws, regulations, rules or regulatory codes within their respective jurisdiction. Any stricter or more specific requirements, rules or standards of conduct take priority over the Code.
It is the expectation of the Consumer Affairs Division of FCNB that mortgage broker licensees (brokerages, administrators, brokers and associates) will adopt the principles as outlined in the Code and ensure that measures are in place to abide by them.
The Code principles will be the standard used for all future mortgage broker compliance reviews conducted by the Consumer Affairs Division of FCNB. Licensing suitability assessments will also incorporate a review of the Code.
For any questions on the Code, contact the Consumer Affairs Division of FCNB at 866-933- 2222 or by email at info@fcnb.ca.
Source: FCNB
