Code of Conduct for Federally Regulated Financial Institutions

Mortgage Prepayment Information
 
Yesterday, the federal government published a Mortgage Prepayment Code.  The Code will guide all federally regulated institutions in how they communicate the Interest Rate Differential (IRD) to borrowers. 

Borrowers win for more clarification for mortgage terms. After class-action suits and a lake of client tears, the federal government moved Sunday to force banks to clarify their prepayment terms. The policy elements are broken down into 5 parts

1Information provided Annually

2.Information Provided When the Borrower Is Paying a PrePayment Charge

3.Enhancing Borrower Awareness

4.Financial Calculators

5.Borrower Access to Actual Pre-Payment Charge

CAAMP was involved in the consultation process regarding the Code of Conduct. To view the Mortgage Prepayment Code – click here

Angela Calla, AMP
Mortgage Expert, 2009 AMP of the Year by CAAMP
Host of “The Mortgage Show” on CKNW AM980 Saturdays at 7pm