2,553
edits
Difference between revisions of "Types of Lenders and Creditors"
From Clicklaw Wikibooks
Types of Lenders and Creditors (view source)
Revision as of 22:10, 16 September 2018
, 22:10, 16 September 2018no edit summary
| Line 58: | Line 58: | ||
=== Mortgage brokers=== | === Mortgage brokers=== | ||
Mortgage brokers negotiate '''mortgages''' with lenders on behalf of borrowers and, in some cases, extend credit on the strength of mortgages on land that they then “sell” to a third party who receives the monthly payments from the borrower. | Mortgage brokers negotiate '''[[Mortgages and Foreclosure|mortgages]]''' with lenders on behalf of borrowers and, in some cases, extend credit on the strength of mortgages on land that they then “sell” to a third party who receives the monthly payments from the borrower. | ||
Mortgage brokers must be licensed under the BC ''[http://canlii.ca/t/847h Mortgage Brokers Act]'', which is aimed specifically at brokering businesses. Most other financial institutions and individuals who might come within the scope of the Act are exempt from its licensing provisions, including all savings institutions, lawyers, government lending services, and court-appointed receivers and trustees. | Mortgage brokers must be licensed under the BC ''[http://canlii.ca/t/847h Mortgage Brokers Act]'', which is aimed specifically at brokering businesses. Most other financial institutions and individuals who might come within the scope of the Act are exempt from its licensing provisions, including all savings institutions, lawyers, government lending services, and court-appointed receivers and trustees. | ||
Aside from setting out licensing requirements, the ''Mortgage Brokers Act'' requires the disclosure of borrowing costs in cases where the broker-lender is charging a bonus or other brokering fee (see the section on Interest and the Cost of Borrowing Money). | Aside from setting out licensing requirements, the ''Mortgage Brokers Act'' requires the disclosure of borrowing costs in cases where the broker-lender is charging a bonus or other brokering fee (see the section on [[Interest and the Cost of Borrowing Money]]). | ||
Clients should be cautious of obtaining credit through a brokering business. They should know that the cost of borrowing may be higher than from other credit sources. | Clients should be cautious of obtaining credit through a brokering business. They should know that the cost of borrowing may be higher than from other credit sources. | ||
If a client already has a mortgage from a broker and is now having trouble meeting their obligation, the client should consult a lawyer on the various remedies available. | If a client already has a mortgage from a broker and is now having trouble meeting their obligation, the client should consult a lawyer on the various [[Debtor’s Options for Getting Out of Debt|remedies available]]. | ||
=== Pawnbrokers=== | === Pawnbrokers=== | ||
