The Provincial Government is considering changes to the Mortgage Brokers Act and is seeking input from individuals working in the mortgage brokering industry, customers of mortgage brokers and the general public regarding the proposed amendments.
Mortgage brokers in Newfoundland and Labrador offer mortgages through financial institutions such as banks or trust companies, mortgage finance companies or private lenders. The Mortgage Brokers Act, which was proclaimed in 1976, has not had any substantive changes since that time and requires updating to reflect the current mortgage brokerage industry and consumer expectations.
Specifically, items in the Mortgage Brokers Act that are the focus of the review and consultation include:
- Registration of all individuals dealing in mortgage activity;
- Education standards and requirements for continuing education;
- Code of conduct including disclosure requirements and conflict of interest provisions;
- Errors and omission insurance with coverage for fraudulent acts;
- Administrative penalties and fees; and
- Administration agreements between the mortgage brokers and borrower.
The questionnaire can be completed online by visiting engageNL, or written submissions can be emailed to gabrielwilliams@gov.nl.ca or through regular mail to:
Policy and Strategic Planning
Digital Government and Service NL
Confederation Building, West Block, 2nd Floor
PO Box 8700
St. John’s, NL
A1B 4J6
Online and written submissions will be accepted until October 31, 2021. Any questions related to this questionnaire or requests for an alternate format can be directed to MBAconsultations@gov.nl.ca or 709-729-7437.
The proposed changes are consistent with the recent amendments to the province’s real estate legislation, and would similarly enhance and strengthen the mortgage broker legislation and contribute to government’s ongoing commitment to enhanced consumer protection.
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“The purchase of a home or condominium may be the largest financial transaction a person will make in their lifetime, and our government wants to ensure consumers have the best protection possible so they can feel comfortable with that purchase and the purchase process. Consultations on the Mortgage Brokers Act would inform any potential changes to legislation and supports our commitment to increased consumer protection for the people of the province.”
Honourable Sarah Stoodley
Minister of Digital Government and Service NL
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Learn more
News Release: Amendments Aim to Improve the Province’s Real Estate Environment –
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Media contact
Krista Dalton
Digital Government and Service NL
709-729-4748, 685-6492
kristadalton@gov.nl.ca