Mortgage broker in Belgium: role, FSMA and cost

Who must be registered with the FSMA

According to the FSMA, anyone who is not a lender and who, professionally and on a self-employed basis, does one of the following for remuneration must register as a credit intermediary:

• presenting or offering credit agreements to consumers;
• assisting consumers in preparing to conclude such agreements;
• concluding credit agreements with consumers on behalf of a lender.

The obligation applies to natural persons and to legal persons (companies). Registration is either for mortgage credit or for consumer credit. An intermediary active in both areas needs two registrations. Remuneration can take different forms, not just money.

The categories of mortgage credit intermediaries

The FSMA distinguishes three categories. They are mutually exclusive: an intermediary can only be registered in one.

• The mortgage credit broker puts lenders and consumers in touch, without being a tied agent. They have no obligation to place their business with any particular lender.
• The tied agent acts on behalf of, and under the full and unconditional responsibility of, a lender or a group of lenders.
• The sub-agent acts under the responsibility of a broker or a tied agent.

Broker or tied agent: the difference that matters

The broker is not tied to any lender. In theory, they can therefore compare several offers. The tied agent works for a lender or a group of lenders, and that lender answers for them. Always ask the person you are dealing with which category they are in and, if they are a tied agent, which lender they work for. The range of lenders a given broker can choose from must be checked with them, in writing. It does not appear in the register, according to the pages read.

How to check the FSMA register

The FSMA publishes an up-to-date list of registered intermediaries on its website. It states that you can search by the intermediary’s name and/or company number. The FSMA Data portal also brings together the registration lists, for example “Belgian mortgage credit brokers”.

Three points to watch:

1. No FSMA number specific to the registration. The FSMA writes that no registration number is assigned to a credit intermediary: they are registered under their company number. So ask the broker for their company number (BCE, the Crossroads Bank for Enterprises).
2. Intermediaries “provisionally authorised” are not published. The FSMA says so expressly: their list is not published.
3. Check it is the right registration. Make sure it covers mortgage credit, and not just consumer credit, and check the category.

It is up to you to carry out this check with the FSMA. Note the date you consulted it.

What the broker must give you

According to the FSMA, the rules of conduct are in the Code of Economic Law, Book VII, Title 4, chapters 1 to 3, and FPS Economy monitors compliance with them. The FSMA controls access to the profession. According to the FSMA, FPS Economy checks in particular advertising, the provision of information and advice obligations.

The legal texts (Code of Economic Law, Book VII, in the version published in the Belgian Official Gazette of 4 May 2016; check the version in force) provide in particular for:

• Free personalised information (art. VII.127). The lender, and where applicable the intermediary, provides the consumer free of charge with the information they need to compare loans. The “ESIS” form (the European Standardised Information Sheet) is given on a durable medium “before or at the same time as the credit offer is submitted”. The text read places this handover on the lender.
• A duty to advise (art. VII.131). The lender and the credit intermediary must act “in the best interests of the consumer”. They are prohibited from charging the consumer, directly or indirectly, for these advisory services.
• Information on commissions (art. VII.128). The intermediary must disclose the existence of commissions or other incentives paid to them by lenders or third parties. On request, a broker who receives a commission from lenders must inform you about the different levels of commission paid by the lenders.

A good reflex: ask for the details of each offer in writing, keep all documents and do not sign anything under pressure. To assess how much you can borrow, see your borrowing capacity.

Complaints: Ombudsfin

Credit intermediaries must confirm that they are members of Ombudsfin, the ombudsman service for financial matters. According to the FSMA, this membership is a condition for obtaining and keeping the registration.

Ombudsfin gives this information about its procedure:

• mediation is “entirely free of charge for the complainant”;
• the processing time is in principle 90 calendar days, renewable depending on the complexity of the case;
• Ombudsfin advises first lodging a complaint with the institution concerned, but this is not compulsory;
• its opinions are not binding on the parties (except for the basic banking service);
• the procedure has four stages: submission, admissibility, investigation, written opinion.

Ombudsfin reports a processing backlog and limited telephone availability. Preferably use the online complaint form. If you are not satisfied with the opinion, the courts remain an option.

Which professional to consult

• A mortgage credit broker registered with the FSMA, to compare offers.
• A tied agent or the bank itself, if you want to deal directly with a lender.
• A notary, for the deed of sale and the loan deed.
• A lawyer, for a dispute that goes beyond mediation.