Financial and Consumer Affairs Authority of Saskatchewan

FCAA is Saskatchewan’s financial and consumer marketplace regulator.

Mortgage Brokers

  • Mortgage Brokers

    For information about mortgage brokers select from the options below.

     

     

    Apply for a license

    Mortgage brokers are individuals that broker mortgages on behalf of a licensed mortgage brokerage.  Mortgage broker applicants need to meet both education and experience requirements, and be found suitable for licensing.   
     
    If you are seeking a licence as a mortgage broker, you must:

    • submit a completed application form;
    • remit the $250 initial review fee;
    • remit the $400 annual fee (note: this fee will be refunded if your application is refused);
    • send in information demonstrating you have completed an approved mortgage broker education course, or that you are exempt from the education requirement;
    • send in information demonstrating you meet the 24 months experience requirement; and
    • provide the required supporting information, including a completed criminal record check dated within 3 months of the date of application.

    Read the mortgage broker licence kit for full instructions regarding these items.

    Mortgage broker applicants need to meet education requirements.  Individuals seeking a mortgage broker licence should contact FCAA to discuss how this requirement can be met.

    If your application is approved and you are licensed as a mortgage broker, you will need to comply with the requirements applicable to licensees.

     

    Licensing applications for Mortgage Brokers currently licensed in other jurisdictions

    Mortgage brokers are individuals that broker mortgages on behalf of a licensed mortgage brokerage.  Mortgage broker applicants need to meet both education and experience requirements, or be exempt from these requirements, and be found suitable for licensing.  
     
    Are you exempt from the education and experience requirement?

    Under section 4.1 of The Mortgage Brokerage and Mortgage Administrators Regulations, an individual is exempt from the mortgage broker education and experience requirements if they have an authorization as any of the following:  

    • British Columbia – Designated Individual 
    • Alberta – Mortgage Broker
    • Manitoba – Authorized Official
    • Ontario – Mortgage Broker
    • Québec  – Mortgage Broker Qualified to Manage an Agency or
    • Québec  – Fully Qualified Real Estate Broker Qualified to Manage an Agency
    • New Brunswick - Mortgage Broker

    Individuals who do not hold one of the above authorizations are not exempted from the mortgage broker education and experience requirements, and need to demonstrate they meet the education and experience requirements when they apply for a licence.  These individuals need to complete the mortgage broker licence kit – if licensed in another jurisdiction.

    Before submitting an application

    Within the mortgage broker application you are required to attest that you are familiar with The Mortgage Brokerage and Mortgage Administrators Act and will comply with it and its regulations.  In addition to knowing the information in the legislation and what is provided on the FCAA website, it is recommended that you contact the brokerage under which you are applying for guidance in meeting this requirement. 

    How to apply

    If you are seeking a licence as a mortgage broker, you must: 

    • submit a completed application form;
    • remit the $250 initial review fee;
    • remit the $400 annual fee (note: this fee will be refunded if your application is refused); and
    • provide the required supporting information, including a completed criminal record check dated within 3 months of the date of application. 

    If your application is approved and you are licensed as a mortgage broker, you will need to comply with the requirements applicable to licensees.


    Compliance with legislation

    Once you are licensed as a mortgage broker, you must comply with all aspects of the legislation. 
     

    Requirements

    Mortgage brokers are required to act in the best interests of the borrower.  The only exception to this requirement is certain situations outlined in the legislation where a private investor is involved.  Mortgage brokers need to ensure they understand this obligation, and comply with it.

    To assist brokers in identifying the legislative requirements, the office of the Superintendent of Financial Institutions developed a summary of compliance requirements.  These requirements include annual requirements:

    • submitting an annual return for each year ended May 31, by June 30 of each year;
    • paying the next year’s annual fee of $400 by June 30 of each year.

    In addition to the annual requirements, all mortgage brokers need to comply with the ongoing notification requirements to the Superintendent, including notification within 7 days of any of the following:

    • you are no longer authorized to broker mortgages on behalf of the brokerage
    • a change to your contact information, such as:
      • email address;
      • phone number;
      • mailing address or address for service.
    • any charge under the Criminal Code;
    • any charge of an offense against the law of any country, province or state, other than traffic offenses.

    There are other notification requirements in the legislation.  The licensed broker must ensure it is familiar with these requirements, and provides these notifications within the required timeframe.

    Mortgage brokers may be assigned responsibility to supervise one or more mortgage associates that broker mortgages on behalf of the same brokerage.  Mortgage brokers must take this supervision responsibility seriously, and carry out necessary processes to ensure the associate is adequately supervised.  Brokers should ensure they comply with the brokerage’s policies and procedures in carrying out any assigned supervision.

    Read the FAQ document for more information about compliance requirements.
     

    Automatic Suspensions

    Your licence is automatically suspended if:

    • you are no longer authorized to broker mortgages on behalf of the brokerage named on your licence; or
    • the brokerage named on your licence has its licence suspended or cancelled.

    If your licence is suspended, you must immediately cease all mortgage brokering activities until such time as your licence is reinstated.  You need to apply to have your licence reinstated, and pay the $100 reinstatement fee.

    In certain circumstances, advance notice can be provided to the Superintendent if you wish to change brokerages in a manner that avoids your licence being suspended.
     

    Principal Brokers

    The legislation requires that every brokerage have one broker designated to be the principal broker.  If you are the principal broker of a brokerage, there are a number of responsibilities you need to carry out in addition to the responsibilities applicable to all brokers, including:

    • acting as the Chief Compliance Officer for the mortgage brokerage;
    • taking reasonable steps to ensure that the brokerage and each mortgage broker and associate follow all of the requirements of the Act and the Regulations;
    • following up to ensure any non-compliance is addressed;
    • reviewing the brokerage’s policies and procedures to determine whether they are designed to ensure that the brokerage and every broker and associate comply with the Act and Regulations;
    • reviewing the brokerage’s policies and procedures to determine whether they are designed to ensure that every broker and associate is adequately supervised;
    • issuing written recommendations to the brokerage where you identify the brokerage’s policies and procedures do not meet the legislative requirements; and
    • assigning a broker to act as a supervisor for each associate.

    These are significant responsibilities.  As part of the Superintendent’s examination program, you will be asked to demonstrate that you are meeting the requirements of a principal broker.
     

    Continuing Education Requirement

    As set out in the Act, every licensed mortgage broker must complete the approved continuing education course by May 31.
     

     

    Disclosure to consumers

    The legislation requires that specific information is provided to borrowers. Brokerages must ensure that all brokers and associates are aware of these requirements and that brokers and associates are providing the required disclosures. To assist brokerages, brokers and associates (collectively "licensees") in meeting these requirements, the Superintendent has developed the following forms:

    Initial Disclosure Form

    The requirements for providing the initial disclosure form to a borrower are outlined in the frequently asked questions – compliance requirements.

    Mortgage Disclosure Form

    The requirements for providing the mortgage disclosure form to a borrower are outlined in the frequently asked questions – compliance requirements. For guidance read the mortgage disclosure form guidance document.

    Disclosure to Borrower that Duty of Care is to Private Investor

    Licensees must act in the best interests of the borrower, except where section 26 of the Act applies. Section 26 of the Act requires a licensee to act in the best interests of a private investor if the private investor is not represented by another licensed brokerage, and the licensee:

    • solicits the private investor to make an investment in a mortgage;
    • negotiates or arranges an investment in a mortgage by the private investor; or
    • provides advice to the private investor with respect to the appropriateness of making a particular investment in a mortgage.

    In these cases, the licensee must immediately inform the borrower in writing that it is acting on behalf of a private investor, and is obligated to act in the private investor’s best interests which may be in conflict with the borrower’s best interests.

    When a mortgage is not being funded by a private investor, the licensee's duty of care is to the borrower and this disclosure form is not used.

    Referral Disclosure Form

    Under section 30 of the Regulations, licensees who receive remuneration for referring a borrower or private investor to another person must provide certain information in writing to the borrower or private investor. This disclosure must be provided no later then when the referral is made.

     

    Filings and notifications to the Superintendent

    Once licensed, mortgage brokers and associates (“individuals”) must comply with the filing and notification requirements set out in the legislation.

    To assist individuals in providing the necessary information, forms have been developed for the following: 

    Advance Notice of Transfer Between Brokerages

    In certain circumstances, individuals may be able to transfer between brokerages without having their licence automatically suspended. 

    Annual Return

    Every individuals is required to submit an annual return covering the period from June 1 to May 31.  The Annual Return must be provided to the Superintendent no later than June 30 of every year (e.g. the June 1, 2011 to May 31, 2012 return must be provided by June 30, 2012).  If the individual was licensed during the reporting period (i.e. was not licensed for the entire 12 month period), please contact the office of the Superintendent to discuss the applicable reporting period.  The $400 annual fee is due no later than June 30 of each year, and should accompany the annual return filing.

    Change in Circumstances

    Individuals must promptly notify the Superintendent in writing, within 7 days, if any circumstances arise that may affect your license.

    Change in Contact Information

    Individuals must promptly notify the Superintendent of changes to their information

    Notice of no Longer Brokering on Behalf of Brokerage on Licence

    Individuals are authorized to broker mortgages only on behalf of the brokerage listed on their licence.  If an individual ceases to broker on behalf of that brokerage, whether that decision is made by the individual or the brokerage, the individual must notify the Superintendent within 7 days.  These individuals need to be aware their licence is automatically suspended.

    Reinstatement of Licence

    Individuals whose licence has been suspended need to apply and have it reinstated prior to brokering mortgages.
     

    These forms are not a comprehensive listing of all requirements.  Brokers and associates need to ensure they comply with all filing and notification requirements.  If an individual is unsure what information needs to be provided to meet a notification or filing requirement, they should contact the office of the Superintendent.
     

    Regulatory Actions

    This section contains documents relating to actions taken, such as consent orders, decisions, administrative penalties and licence conditions.

     

    Consumer Credit Division

    Suite 601, 1919 Saskatchewan Drive

    Regina, Saskatchewan S4P 4H2

    Tel: (306)787-6700

    Fax: (306)787-9006

    Email: fid@gov.sk.ca

Agree Term