Mortgage brokers and mortgage associates are licensed professionals who can help negotiate and navigate the often complicated process of getting a mortgage. They do not actually lend money—rather, they act as an intermediary between a borrower and a lender.
A mortgage broker or associate can act for either the borrower or the lender, but not both. When acting on behalf of the borrower they essentially shop around to different lenders on the borrower’s behalf.
In New Brunswick, these individuals are regulated by FCNB and must be licensed and meet certain education requirements to do business in the province.
The Mortgage Brokers Act (Act) sets out a licensing regime for parties who broker or administer mortgages. There are four licence types set out in the legislation:
- mortgage brokerage (brokerage)
- mortgage associate (associate)
- mortgage broker (broker)
- mortgage administrator (administrator)
Associates and brokers acting on behalf of a brokerage have a duty to act fairly, honestly and in good faith in all of their activities. There are also additional obligations when acting for borrowers or for private investors. The Act provides for meaningful disclosure to borrowers and investors in mortgages to protect consumers from inappropriate conduct, including conflict of interest and predatory lending practices, to ensure the mortgage product is appropriate.