Rogers shares his perspective on issues such as obligations of mortgage brokers, reciprocal provincial licensing and areas to be aware of where the brokering online.
This discussion is here:
THIS YEAR'S CMT MUSIC: as mortgage brokers more business with customers via the Internet, issues, what does this increase the FICOM?
CR: obviously the Internet provides an effective communication channel to the public through the Internet brokers can emit rates, mortgage information and advice and the provision of online mortgage applications. However, there are several challenges which it presents to the Internet:
The use of the Internet increases the likelihood that brokers will have fewer meetings live. This can lead to brokers, costs less time advising borrowers on the details of the mortgage obligation or cost of credit disclosure.
It is useful for the broker to sit in front of a customer and review the documentation of important to them, highlighting the key components of the mortgage transaction as fees because, APR or cost of the credit calculation form for disclosure. Also the lack of direct interaction can lead to increased instances of title fraud and impersonation, if the broker finally does not satisfy the borrower to verify that they are dealing with.
In some cases, we found that mortgage brokers who work with customers electronically are also geographically remote from the property is mortgaged. They may therefore be familiar with some unique characteristics of the property, which can affect the value of the property and affect the lender.
As an example, there has not been a condominium complex in Vancouver, which is well known because of several news articles about used for marijuana grow operations. Local firms refused to deal with borrowers to finance these condominiums. However, geographically dispersed broker who relied on the Internet for customers, ruined financing for some of the owners of condominium and aware of their illegal use and potential problems of the State.
The increasing popularity of the Internet has also led to the spread of unregistered mortgage brokering activities. It is easy for illicit operators to create Web sites that offer mortgage financing to the public. In some cases, these web sites provide more detailed data for the operator and can be created for the purpose of carrying out the advance fee fraud with enticing high risk borrowers to pay an advance fee in return for the promise of fundingthat never materialized.
Some of the web site an unregistered activity may also provide that mortgage applications for receipt of financial information to sell to fraudsters for purposes of identity theft. Some of the Web sites may be misleading in that appear to work with mortgage originators with access to lenders, but in reality are the mortgage mortgage lead generators (which probably not registered) from different parts of the continent or the world.
Unbeknownst to the user, they will collect data for the application of the borrower to sell to third parties, which may include mortgage brokers or lenders. These mortgage brokers will use the acquired information to ask the user for the mortgage business. Many users have complained of our Office for this practice, leading to us issuing a newsletter, explains that the mortgage lead generators are involved in generating activities which require a mortgage broker registration.
THIS YEAR'S CMT MUSIC: what is the FICOM position of reciprocal mortgage agent licensing with other provinces (such as Ontario and Alberta). FICOM support this initiative?
CR: as a whole FICOM maintain reciprocity; However, this support should be made mainly with the removal of obstacles to the mobility of labour, instead of creating more competition between brokers and therefore better pricing to consumers. To our knowledge there is no lack of competition in the mortgage broker.
We have been cooperating with our neighbouring provincial regulators, the real estate Council of Alberta (RECA), for several years. There is one page of our Web site, which explains the requirements for becoming registered in British Colombia, with the help of a mortgage broker qualification of Alberta. There are similar reciprocal provisions for mortgage brokers of British Colombia who wish to obtain a broker in mortgages licensing in Alberta. British Colombia is also a party to the new partnership in the West and trade agreement with the Alberta and Saskatchewan, which will require a similar cooperation with Saskatchewan, from 1 July 2013. Discussions with the financial services Commission of Saskatchewan is expected to start later this year.
Finally, we are also on a case by case basis with licensed mortgage brokers in Ontario which are licensed with the financial services Commission of Ontario and who wish to obtain registration in British Colombia.
THIS YEAR'S CMT MUSIC: FICOM has specific regulations and guidelines which impose fiduciary duty on BC. mortgage brokers to recommend the most appropriate mortgage product, and to attempt to ensure the most competitive mortgage rates to their customers?
CR: law on mortgage brokers do not contain any specific requirements, requiring mortgage brokers to recommend the most appropriate mortgage product for the borrowers and the most competitive interest rates. This is not a simple matter, since some mortgage brokers also have mortgage lenders and administrators, or they actually represent the lenders, including the unsophisticated investors.
However, mortgage brokers are under an obligation in law to provide statements in advertising or other materials – so special equipment, if they argue, to find the best rates for borrowers ", and they do not, then they may be trained in the law on execution of false declarations or engaged in detriment of the behavior.
In addition, the common law of Agency, if the broker has created an agency relationship with the customer, they will have a fiduciary duty is owed by you to find the best speed of the most appropriate product for the customer.
And finally, all conflicts of interest must be clearly indicated to the customer in accordance with the requirements of the law. Any failure of a broker to disclose conflicts or to act in the interest of the borrower, while acting as a fiduciary may lead to disciplinary action by the Registrar.
Bar: for more information about adjusting the FICOM of BC. mortgage brokers see this link.
Rob McLister, THIS YEAR'S CMT MUSIC
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