Mortgage Broker Industry Council Update
| August 31, 2022
Summary of activities since May 2022 from Clarence Lee, Chair
RECA, as an organization, continued to focus on strengthening our relationships with all stakeholders over the past quarter. In the spring, the Mortgage Broker Industry Council hosted an engagement session for all stakeholders. a broker forum, and several other special interest meetings—such as the ones regarding ways to strengthen the regulation of private lending. In each instance, we heard from you, our stakeholders.
Thank you to all of those who have engaged with us recently. It has been an eventful time!
In the last update, you were invited to weigh in on RECA’s strategic priorities. The deadline to contribute through the survey was June 9. I am happy to report that feedback was positive and the organization will be moving forward with the proposed priorities that will inform RECA’s 2022-2025 strategic plan. There was considerable participation from the mortgage sector and I am thankful that so many of you provided your insights.
Guided by the strategic priority of Regulatory Excellence, RECA will examine the current Real Estate Act Rules (drafted in 2006) to make sure they provide effective consumer protection in today’s setting. To ensure adequate stakeholder consultation throughout each step of the process, this review will occur over a period of two years. Progress has already begun—the Mortgage Broker Industry Council has appointed Council Member, Gord Appel to serve as our industry sector representative on the Rules Review Steering Committee.
Two of the largest concerns for the mortgage sector continue to revolve around advertising and incentives, and private lending.
The former Mortgage Broker Advisory Council completed considerable work to address the growth of private lending in Alberta—and potential associated changes to the Rules—before it was disbanded by the ministerial directive in 2019. This Council is now revisiting this topic and the work done previously has provided a great starting point for the new review. In early July, interested mortgage brokers, particularly those who arrange mortgages for private lending, discussed the current issues related to this topic. Alberta currently has no way to track private lending activity and the goal is to strengthen consumer protection for those considering becoming a private lender. If you would like to be a part of future discussions, don’t hesitate to reach out or provide any of your feedback directly to me and this Industry Council by emailing MortgageIC@reca.ab.ca.
I am pleased to announce them Fundamentals of Mortgage Brokerage and the Practice of Mortgage Brokerage courses are now available from the Alberta Mortgage Brokers Association (AMBA). Moving forward, RECA will no longer be registering new learners in those courses and is on track for its full divestment of mortgage education by the November 30, 2022 deadline.
Licence Renewal Period
And finally, a reminder to renew your licence by the September 30, 2022 deadline. The myRECA system is now open for all licensees. As mentioned in our Board Chair’s message, there will be no increase to renewal fees for the 2022/2023 licensing year.
As you can see there is a lot going on in the mortgage industry and we don’t expect that to slow down as we move into the fall. As we always reiterate, self-regulation is a privilege that requires stakeholder input, and the Mortgage Broker Industry Council looks forward to the valuable and considerable feedback this sector continues to provide.