On Jul. 14, CAN BC GVT reported on new mortgage services regulation
CAN BC GVT reported on new rules and regulations for the mortgage services industry.
Respond to recommendations of Commission of Inquiry into Money Laundering in B.C.
Follows Oct. 2022 CAN BC GVT passage of the Mortgage services act, see #149981.
Safeguards, Transparency For Homebuyers
The Mortgage services act and its newly approved regulations respond to recommendations of Commission of Inquiry into Money Laundering in British Columbia.
Commission identified gaps and vulnerabilities in the regulation of mortgage brokering.
New act expands regulatory requirements and provides BC Financial Services Authority with enhanced tools to regulate industry, investigate, license, set standards of conduct.
Framework sets out explicit requirements for mortgage brokers to provide homebuyers with honest, transparent advice as to not unknowingly entering into risky mortgages.
Protects housing market by deterring criminals from using real estate to launder money by increasing oversight, making suspicious transactions easier to investigate.
Mortgage brokers will also be required to follow tighter anti-money-laundering rules.
Sets out four categories of licensing, including licensing for dealing in mortgages, for trading in mortgages, for administering mortgages, and for mortgage lending.
Effectiveness
Approval of regulatory framework for the Mortgage services act brings it into force in fall 2026, providing the industry and regulator with a 15-month period to prepare.
