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The Regulatory and Compliance Environment


As mortgage brokerage activities and products become more diverse and greater public attention is placed on consumer protection and financial market oversight, there is a growing need for mortgage brokers to be aware of the regulatory environment in which they operate. This course starts with an overview of the legislative framework governing mortgage lenders, brokers, as well as consumer protection, and then looks specifically at how mortgage brokerages can ensure compliance with these requirements while managing their risks. Finally, the course looks at various common forms of mortgage-related fraud and how mortgage brokers should detect and handle these incidents in a compliant manner.

Course Outline

Section 1: Regulatory Overview
  • Principles-based regulation
  • Mortgage broker regulation in Canada
  • Mortgage lender regulation in Canada
  • Mortgage insurer regulation in Canada
  • Consumer protection laws (personal information, consumer reporting, anti-spam)
  • The Mortgage Broker Regulators’ Council of Canada (MBRCC)
  • Industry association codes of ethics and professionalism
Section 2: Compliance and Risk Management
  • Definition of compliance and compliance risk
  • Roles of compliance function
  • Designated individual, authorized official, and principal broker
  • Elements and benefits of creating effective compliance environments
  • Required competencies for compliance roles
  • Consequences of non-compliance
  • Elements of risk and risk tolerance
  • Basic approach to risk management
  • Reputational risk
  • Risk response options
  • Enterprise risk management
  • Monitoring risks
Section 3: Fraud Prevention
  • Overview of mortgage fraud
  • Tools used by fraudsters
  • Fraud for shelter
  • Appraisal fraud
  • Illegal property flipping
  • Air loan fraud
  • Title fraud
  • Fraud to further other criminal activities
  • Prevention measures for brokers and principal brokers
  • Face-to-face verification
  • Non face-to-face verification
  • Verifying application, employment, down payment, property, and credit report information
  • What to do if fraud is suspected

Course Glossary

View the glossary of important terms for this course.