TORONTO, July 22, 2021 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) has identified two critical areas where mortgage professionals must demonstrate high conduct standards to protect consumers from financial harm:
- Mortgage brokerages working with homebuyers who seek financing from private lenders must clearly explain the options, risks and consequences of using these lenders
- Mortgage administrators must provide investors with timely and accurate information to ensure they make informed decisions and adapt their investment strategies if needed
In its 2020-2021 supervision results, FSRA noted opportunities for mortgage administrators to improve disclosures to investors of non-qualified syndicated mortgage investments (NQSMIs). FSRA also observed a growing alternative lending market and increased investor appetite for higher yield investments. Building off the previous year's supervision activities and current market trends, FSRA's areas of supervision focus in 2021-2022 are: mortgage brokerages' business practices in private lending, and mortgage administrators' practices in providing disclosure and managing clients' funds.
FSRA will also review developments driven by regulatory changes and other supervision findings. They include principal broker supervision findings, the NQSMI market and potential unlicensed activity for new business models or mortgage products.
Mortgage brokerages, brokers, agents and administrators are encouraged to review this plan and other FSRA publications to ensure, where appropriate, they:
- Have adequate disclosure and suitability practices when working with homebuyers seeking financing from private lenders.
- Disclose information to investors in a timely manner, not just at the point-of-sale but during the mortgage term and at extensions and renewals.
Learn More
- Mortgage Brokering Sector Supervision Plan 2021-22
- FSRA launches industry newsletter for the mortgage brokering sector to facilitate compliance and increase consumer protection
FSRA is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca.
SOURCE Financial Services Regulatory Authority of Ontario
FOR MEDIA INQUIRIES: Serina Yau, Senior Communications Advisor, Financial Services Regulatory Authority, C: 437-216-9534, Email: [email protected]
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