Do Mortgage Brokerages need to meet any new business requirements on January 1, 2009?
As of January 1, 2009, each Mortgage Brokerage is required to: • List its Mortgage Brokerage licence number and the name in which it is licensed, on all public relations materials; • Verify the identity of borrowers, lenders and investors; • Disclose whether it is acting in the interest of the lender, the borrower, or both the borrower and lender; • Disclose the number of lenders that it has acted for in the previous fiscal year; • Disclose the fees it will receive from others, the fees payable to others, and the fees it will receive for making referrals; • Ensure the mortgage is suitable for the client; • Disclose the material risks of the mortgage, or the material risks for the investment in the mortgage; • Disclose its relationship with each lender, borrower and investor; • Disclose potential conflicts of interest; • Not collect advance fees for mortgages of $300,000 or less; • Establish policies and procedures to ensure its Mortgage Brokers and Agents comply with the Mortgage Broke
