Role of Mortgage Broker

Role of the Mortgage Broker

• The mortgage broker advises borrowers on preparing, presenting, approving, and accepting mortgage loan applications, ensuring a smooth process and offering solutions that meet their needs.

Maintaining the Mortgage File

• The mortgage broker is responsible for keeping each client's file up to date, recording all documents concerning the client.
• A separate file is kept for each mortgage loan application, even for the same client.
• The file includes documents sent to the lender, written communications between the broker and borrower, product justification, loan application, and lender's response.
• The broker must validate documentation as often as possible with originals and ensure consistency with the borrower's information.
• The file must be accessible to the responsible manager of the mortgage brokerage firm.
• All files, funded or not, must be kept for five years from their closure.

Regulatory Requirements

• Chapter 6 of manual F-116 explains the regulatory requirements for maintaining mortgage files.
• The Authority regularly inspects and verifies the conformity of the files, providing warnings or sanctions in case of defects.

Brokerage Contract or Requirements Document

• Mortgage brokerage firms must comply with written consent and disclosure requirements provided by the Act respecting the distribution of financial products and services (LDPSF).
• The brokerage contract or written document aims to record client information, disclose broker obligations, and obtain client consent.
• The contract or document must include mandatory disclosures regarding compensation, commission sharing, number of lenders, and complaint handling policy.
• The client's consent is required for requesting personal credit information, sending a mortgage loan application to a lender, and transmitting personal information to a third party.