TORONTO, Sept. 26, 2023 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) continues to protect consumers' interests when they shop for a mortgage or invest in one. We are releasing our annual Mortgage Brokering Sector Supervision Plan which will:
- Help consumers receive mortgage recommendations suitable for their needs.
- Ensure investors and lenders have confidence that mortgage administrators are protecting the investments and funds in their care.
It will also help industry better understand FSRA's expectations and identify areas of improvement.
"Consumers looking to obtain or invest in a mortgage are facing greater risks due to rising interest rates, higher inflation and a volatile housing market," said Antoinette Leung, Head, Financial Institutions and Mortgage Brokerage Conduct.
"FSRA's annual Mortgage Brokering Sector Supervision Plan builds on the progress we have made in the past to make sure brokerages, brokers, agents and administrators are protecting clients and keeping clients' interests top of mind. It also allows the industry to better understand FSRA's expectations and identify areas of improvement."
The 2023-2024 Supervision Plan has three areas of focus:
- Brokerages' practices to ensure private mortgages are suitable for consumers and consumers understand product features and costs, including consideration of an exit strategy;
- The conduct culture, compliance structure and principal broker's supervision in large brokerages to ensure all brokers and agents are conducting their activities with integrity and competence; and
- Practices of licensed administrators, brokerages and/or their related parties who provide services to investors during the life cycle of a mortgage investment.
In support of a more proactive approach, FSRA will also finalize Guidance improving reporting requirements, mortgage suitability and increase consumer education.
The mortgage suitability Guidance will further clarify how the sector should demonstrate that recommended products are suitable for consumers.
As always, mortgage professionals must keep their clients' interests top of mind. We encourage the sector to review the Supervision Plan and our other materials to learn more about their licensing obligations and requirements.
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Review the 2023-2024 mortgage brokering supervision plan
Mortgage brokering – News you need vol. 5
For Media Inquiries Contact:
Russ Courtney
Sr. Media Relations and Digital Officer
Financial Services Regulatory Authority of Ontario
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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