New Mortgage Brokerages and Brokers Act and Regulations come into effect

There are now new regulations in effect pertaining to the mortgage broker industry in Newfoundland and Labrador.

The new Mortgage Brokerages and Brokers Act and Regulations are to implement a licensing framework for the industry, authorize establishing a Code of Conduct for the industry, introduce education and continuing education requirements for the industry, require the industry to have errors and omissions insurance, require mortgage brokerages to maintain trust accounts, strengthen client disclosure requirements for the industry, and authorize administrative penalties for the industry.

The new Act and Regulations is meant to provide protection and reassurance for people using mortgage brokering services.

Mortgage interest rates are not affected by the Mortgage Brokerages and Brokers Act and Regulations as these are primarily determined by the Bank of Canada policy rate.