The potential risk of mortgage fraud is being highlighted by an industry body as Fraud Prevention Month gets underway.
The mortgage broker Regulators’ Council of Canada (MBRCC) is promoting consumer protection from mortgage fraud, including how to spot it and how to report it.
It ties in with the month-long fraud awareness campaign led by the Competition Bureau of Canada and will highlight the practices adopted by mortgage brokers to protect consumers.
"We conducted a jurisdictional scan of current anti-fraud strategies and consulted key stakeholders regarding MBRCC's role in combating mortgage fraud," explains Charles Stevenson, Chair of MBRCC's Mortgage Fraud committee and Registrar of the Real Estate Council of Alberta. "What we learned was that there is a need for anti-fraud information that is applicable to every Canadian mortgage customer and mortgage broker, regardless of the specific legislation that governs mortgage brokering in their province or territory."
MBRCC has made information available on its website for both consumers and mortgage brokers to help identify the risks. For brokers there is also information about responsibilities to prevent mortgage fraud, an anti-fraud checklist, and the consequences of fraud.
"The enhancement of consumer protection is an important strategic priority for the MBRCC," says Alaina Nicholson, Chair of the MBRCC and Director of Consumer Affairs at the Financial and Consumer Services Commission of New Brunswick. "This new release is part of our commitment to promoting a common regulatory approach and consistent standards for mortgage brokers."
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