New Mortgage Act enhances protection for homeowners



    New Licensing Requirements In Effect July 1, 2008

    TORONTO, June 30 /CNW/ -

    NEWS

    The Ontario Government has taken an important step to enhance consumer
protection in the mortgage brokering industry. The new Mortgage Brokerages,
Lenders and Administrators Act, 2006 comes into effect on July 1, 2008.
    The act provides improved disclosure for consumers. For example,
brokerages will be required to disclose material risks of each mortgage,
potential conflicts of interest, and expanded information about fees.
Brokerages will be required to establish policies and procedures to implement
the new disclosure requirements by January 1, 2009.
    Consumers will be able to access a new public register of licensed
mortgage brokerages, administrators, brokers and agents on FSCO's website.
    
    Requirements under the new act:
    -  Businesses and individuals who conduct mortgage brokering activities
       in Ontario are to be licensed with the Financial Services Commission
       of Ontario.
    -  Mortgage brokers and agents now need to meet specific education,
       experience and suitability requirements.
    -  Mortgage brokerages are now required to appoint a principal broker to
       ensure their brokers and agents are adequately supervised and
       requirements are followed.
    -  Mortgage brokerages are now more responsible for the actions of their
       brokers and agents.
    -  Mortgage brokers will, for example, be restricted from tied selling
      
(<a href="http://www.fcac-acfc.gc.ca/eng/consumers/rights/TiedSelling/RightsTiedSelling_e.asp">http://www.fcac-acfc.gc.ca/eng/consumers/rights/TiedSelling/RightsTiedSelling</a>
<a href="http://www.fcac-acfc.gc.ca/eng/consumers/rights/TiedSelling/RightsTiedSelling_e.asp">_e.asp</a>)
       and will have to disclose the brokerage's relationships with lenders.

    For valuable consumer resources and a full list of mortgage brokerages,
administrators, brokers and agents, visit the Financial Services Commission of
Ontario website at: www.fsco.ca

    QUOTES

    "Buying a home is likely the most important financial decision a family
will make," said Minister Duncan, "The updated requirements for mortgage
professionals will encourage more competition and enhance professionalism in
the mortgage brokering industry."

    QUICK FACTS

    -  The Financial Services Commission of Ontario (FSCO) is an agency of
       the Ministry of Finance.

    -  FSCO is responsible for regulating the activities of all mortgage
       brokerages, administrators, brokers and agents throughout the
       province.

    -  The act and regulations require all mortgage brokers and agents in
       Ontario to be at least 18 years of age; work for only one mortgage
       brokerage; meet specific education requirements; conduct all
       activities in accordance with the new act and regulations; and be
       adequately supervised by a principal broker.

    LEARN MORE

    Visit the Financial Services Commission of Ontario website at www.fsco.ca

    Visit the Ministry of Finance website at www.fin.gov.on.ca

    Visit the Canadian Association of Accredited Mortgage Professionals
website at www.caamp.org

    Visit the Independent Mortgage Brokers Association of Ontario website at
www.imba.ca

    Visit the Ontario Real Estate Association website at www.orea.com


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For further information:

For further information: Gina Lee, Minister's Office, (416) 325-4694;
Scott Blodgett, Ministry of Finance, (416) 325-0324

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