The Financial Consumer Agency of Canada (FCAC) has developed a Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances to set out its expectations for federally regulated financial institutions (FRFIs). The guideline targets ‘consumers at risk’ who are individuals with an existing residential mortgage loan on their principal residence experiencing severe financial stress and are at risk of mortgage default.

Among the expectations for FRFIs, as outlined by FCAC, are proactive monitoring for early signs of financial stress, criteria for offering mortgage relief measures, an appropriate assessment for appropriate relief measures, and disclosure of information to the consumer to ensure express consent.

In May 2023, CCUA submitted a response to the FCAC’s consultation on this draft guideline. Please refer here for the response. CCUA will analyze the guideline and will update the sector accordingly.

For more on the guideline, please see here.

For any questions, please contact Morgan Paulgaard.