Mortgage Brokers Act Review Consultation
From January 17 to April 30, 2020, the Province of British Columbia conducted a public consultation to encourage discussion and feedback from stakeholders on potentially replacing B.C.’s Mortgage Brokers Act (MBA) with modern legislation.
The MBA was originally enacted in 1972 as consumer protection legislation in response to an increased number of mortgage brokers and complaints of gross and unconscionable interest rates and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.
In May 2019, the Expert Panel on Money Laundering in BC Real Estate described the MBA in their landmark report on money laundering in B.C.'s real estate sector as "antiquated." In their report, they recommended replacing the MBA with a modern statute to regulate all those in the business of mortgage lending, with few exceptions.
The consultation closed Thursday April 30, 2020.
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.
Submissions were received from 43 stakeholders including individuals, associations and corporations. Associations that made submissions included:
- BC MIC Managers Association (BCMMA)
- Canadian Mortgage Brokers Association British Columbia (CMBABC)
- Mortgage Professionals Canada (MPC)
- British Columbia Real Estate Association (BCREA)
- BC Notaries Association
- Canadian Life and Health Insurance Association (CLHIA)
- Mortgage and Title Insurance Industry Association of Canada (MTIIAC)
- BC Association Appraisal Institute of Canada
- Canadian National Association of Real Estate Appraisers (CNAREA)
The Ministry of Finance is analyzing the results received to determine next steps.