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Mortgage Professional Relationship Essentials

Written Service Agreements

RECA requires mortgage brokers to have written service agreements when working with clients; that requirement applies whether the client is a borrower or a lender.

Written service agreements enhance consumer protection by providing clarity about the roles and obligations of the parties, and reduce the potential for conflicts and confusion. Your written service agreement with your mortgage broker will tell you what you can and should expect from your working relationship with your mortgage broker. Your agreement will:

  • describe the responsibilities and services of the mortgage broker
  • outline the obligations of the mortgage broker and the borrower
  • set out the fees (if any) or how the mortgage broker will receive their fee
  • give consent to collect, maintain, use, and distribute a borrowers’ personal information
  • address any potential conflict of interest scenarios
  • give consent to “pull’ a credit bureau on the borrower(s)
  • give an option for the borrower to receive electronic messages from the mortgage broker after the funding of the transaction