What is the purpose of the Licensing of Mortgage Brokers Act (MBA)?

The purpose of the Licensing of Mortgage Brokers Act (MBA) is to govern the licensing of mortgage brokers and originators. This legislation ensures that individuals and organizations involved in the mortgage industry operate within a framework of regulations that promote ethical behavior and protect consumers. By requiring brokers and originators to be licensed, the Act helps to establish standards for competency, accountability, and professionalism within the mortgage lending process. The ultimate goal is to foster a more trustworthy environment for consumers seeking mortgage loans and to mitigate potential fraud or unethical practices in the industry.

The focus of this Act is specifically aligned with the functions of mortgage brokers and originators rather than other financial sectors, which highlights its targeted nature and regulatory intent within the real estate financing industry.