Mortgage Brokers Act Review Consultation
The Mortgage Brokers Act (MBA) was originally enacted in 1972 as consumer protection legislation to respond to an increased number of mortgage brokers and complaints of gross and unconscionable interest rates and fees. At the time, mortgage brokers were considered the lenders of last resort; however, over the years, the industry has changed and has become part of the mainstream financial market.
Although it has been amended several times since its enactment, the MBA has not kept pace with evolving national and international standards in consumer protection, changes in the financial services market and emerging issues such as money laundering in the real estate market.
The 2018 Expert Panel on Money Laundering in BC Real Estate described the MBA as antiquated and recommended replacing the MBA with a modern statute to regulate all those in the business of mortgage lending, with few exceptions. The purpose of this consultation is to elicit discussion and feedback from stakeholders on the recommendation to replace the MBA with modern legislation.
The consultation closes Thursday, April 30, 2020 at 4 pm. If you have questions about the MBA Review email: MBAreview@gov.bc.ca
Public Nature of Consultation Process
The Ministry of Finance may share comments it receives with other branches of government, including the BC Financial Services Authority, which is responsible for the administration of the MBA.
Freedom of information legislation may require that responses be made available to members of the public who request access.