Consultation open until February 28
The Financial Services Regulatory Authority of Ontario (FSRA) has proposed guidance for the mortgage brokering sector which can help Ontario consumers be assured that the mortgage products they receive are tailored fit for their needs and circumstances.
Alongside the proposed Mortgage Product Suitability Assessment Guidance, FSRA is putting forward changes to two of its forms to make them easier to understand and promote transparency.
Mortgage professionals need to be responsible in establishing that their mortgage product recommendations were suitable for their clients, FSRA said in a release. This includes documentation about how the products they recommend actually fit the specific needs of clients based on their unique circumstances.
In the previous year, FSRA reviewed a sample of private mortgages that were arranged by mortgage brokerages, finding that most of the transactions did not show their clients how the mortgage products were suited for their needs.
FSRA will be having an online webinar which will go over an overview of the proposed Mortgage Product Suitability Assessment Guidance as well as an interactive Q&A session on January 24, 2024.
The consultation regarding the guidance is now open and will close on February 28, 2024.
