FSRA consults on standards for residential mortgage lending

By Staff | September 9, 2020 | Last updated on September 9, 2020
1 min read
Miniature house on white background
© Hirohito Takada / 123RF Stock Photo

The Financial Services Regulatory Authority (FSRA) of Ontario is launching a consultation on proposed guidance for residential mortgage lending for credit unions and borrowers, the regulator said a release on Wednesday.

FSRA said it’s developing the principles-based guidance to update existing standards and ensure credit unions continue to adhere to best practices and operate with effective controls.

“Credit union leaders are responsible for situationally appropriate and effective credit and risk management frameworks that balance the varied needs of their depositor and borrower members,” FSRA said in the release.

The guidance “will ensure that borrowers can achieve home ownership without putting the borrower or credit union at unnecessary risk.”

The consultation follows increased scrutiny in recent years on residential mortgage lending and the tightening of standards for federally regulated financial institutions, the regulator says on its website.

FSRA says the guidance will be flexible so that credit unions can remain competitive.

“Credit unions are diverse in size, complexity and risk appetite,” FSRA’s website says. “Principles-based guidance will enable credit unions to ensure that they are achieving the intended objectives in a manner that is appropriate for each institution.”

Feedback on the proposed guidance is requested by Nov. 11, 2020.

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.