A few weeks into the pandemic, the Financial Services Regulatory Authority of Ontario (FSRA) issued detailed guidelines for mortgage brokerages and mortgage administrators. This has been done to ensure that customers can stay updated.
Mortgage administrators have been instructed to share precise and timely updates with the customers with respect to the changes in their investment values and mortgage terms.
Similarly, mortgage brokerages have also been provided guidelines to follow, particularly when it comes to syndicated mortgage investments. They should:
- Ensure that the appraisal of the property accurately reflects its current value.
- Ensure that the investor or lender is informed if the appraisal was conducted before the COVID-19 pandemic started.
- Bring any limitation statements to the attention of the investor or lender.
For a more in-depth analysis of these guidelines and steps you can follow to comply, please visit the Purview blog: https://www.purview.ca/fsra-issues-new-guidance-to-mortgage-brokerages-for-syndicated-mortgage-investments/
