Regulatory Alerts2019-01-31
Supervisor of Banks Directive on Mortgage Consultants
The Supervisor of Banks issued a directive requiring banking corporations to establish policies and procedures for interacting with mortgage consultants who represent customers in housing loan applications. The regulation mandates that banks accept representatives as valid messengers for customers, verify their authorization, and maintain transparency while prohibiting payments or benefits to these consultants. Banks must also document any decisions to refuse collaboration with specific representatives based on reasonable concerns regarding fraud or impropriety.
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