New Legislation Enhances Consumer Protection

first_imgThe province is making sure Nova Scotians are better protected when they purchase a mortgage with new legislation introduced today, April 16. The Mortgage Regulation Act replaces the 1966 Mortgage Brokers’ and Lenders’ Registration Act, which had not changed significantly since 1999. “Buying a mortgage can be confusing, especially with so many options and vendors to choose from,” said Service Nova Scotia and Municipal Relations Minister John MacDonell. “The new Mortgage Regulation Act ensures the rules around mortgage brokering and lending are up-to-date, reflect current industry practices, and are clear, fair, and consistent throughout the province.” The current mortgage brokering and lending legislation is almost 50 years old. It has not kept up with industry standards, best practices or various mortgage products available to consumers. The new act proactively addresses licensing and insurance requirements for mortgage brokers and lenders. It also brings the province’s mortgage brokering and lending industry in line with other Canadian jurisdictions and ensures Nova Scotia meets its obligations under the Agreement on Internal Trade. Under the new act, Nova Scotians can be assured they are dealing with a trained mortgage broker who will provide them with the best advice possible on what will likely be their biggest debt. According to the Canadian Association of Accredited Mortgage Professionals, which has 275 members in Nova Scotia, 30 per cent of Nova Scotia residential mortgage shoppers consult a mortgage broker. “We’re very pleased to support this new legislation. Many consumers are unfamiliar with the complexities of a mortgage and the range of available options, and they tend to rely heavily on service providers to guide them,” said Jim Murphy, president and CEO, Canadian Association of Accredited Mortgage Professionals. “The new act will raise the bar on education and licensing requirements for mortgage brokering professionals in Nova Scotia, which is good news for consumers, as well as for the industry in Nova Scotia and throughout Canada.” The province consulted extensively with the public, as well as with the mortgage brokering and lending industry in developing the new act.last_img read more