FICOM will soon implement more rigorous disclosure rules for mortgage broker in British Columbia, according to the MBRCC; much to the confusion of one leading industry player.
“Based on what they’ve written I’m surprised; I’d be interested in knowing what prompted the need for increased disclosure,” Steve Bucher, a B.C.-based broker with Mortgage Intelligence, told MortgageBrokerNews.ca. “In terms of who should disclose, it should be Realtors regarding … compensation for referral fees and whether they are disclosed to clients.”
Realtor referral fees have been a well-document frustration for brokers.
The Mortgage Broker Regulator’s Council of Canada recently released its autumn newsletter, and in it mentioned FICOM’s plans to change detailed disclosure for mortgage brokers.
“FICOM is preparing to require brokers to provide more detail regarding compensation,” the council said in the newsletter. “The additional information is intended to shed light on the incentives and compensation structures for mortgage brokers.”
Martin Boyle, Policy Manager for MBRCC, couldn’t tell MortgageBrokerNews.ca what exactly that more detailed disclosure rule will entail.
“I don’t know,” Boyle said. “What I have in the newsletter is what I know.”
Calls to FICOM have not yet been returned.