Compliance with legislation
 

• Mortgage Associates
• Mortgage Brokers
• Mortgage Brokerages
• Mortgage Brokerages with an Endorsement
• Frequently Asked Questions (FAQs)

 

Mortgage Associates

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

• Requirements
• Automatic Suspension
• Continuing Education Requirement

 

Requirements

Mortgage associates 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 associates need to ensure they understand this obligation, and comply with it.

To assist associates in identifying the legislative requirements, FCAA has 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; and
• paying the next year’s annual fee of $400 by June 30 of each year

Please refer to the Registration and Licensing System (RLS) information for instructions on how to complete annual filings.

In addition to the annual requirements, all mortgage associates need to comply with the ongoing notification requirements to the Superintendent of Financial Institutions, 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 associate must ensure it is familiar with these requirements, and provides these notifications within the required timeframe. Please refer to the Registration and Licensing System (RLS) information for instructions on how to update your account online.

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.

 

Continuing Education Requirement

As set out under the Act, every licensed mortgage associate must complete the approved continuing education course by May 31st in a year that ends with an even number. 

Mortgage Brokers

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

• Requirements
• Automatic Suspension
• Principal Brokers
• Continuing Education Requirement

 

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.

Please refer to the Registration and Licensing System (RLS) information for instructions on how to complete online filings.

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. Please refer to the Registration and Licensing System (RLS) information for instructions on how to update your account online.

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. Please refer to the Registration and Licensing System (RLS) information for instructions on how to apply for reinstatement.

 

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 31st in a year that ends with an even number.

Mortgage Brokerages

Once licensed, a mortgage brokerage must ensure that it complies with all aspects of the legislation. The brokerage is also responsible to ensure that every broker and every associate brokering mortgages on its behalf also complies with the legislation.

Mortgage brokerages, and the brokers and associates brokering mortgages on its behalf, 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 brokerages need to ensure they understand this obligation, and comply with it.

The legislation requires the mortgage brokerage to have policies and procedures in place that are reasonably designed to ensure compliance with all legislative requirements. These policies and procedures must be periodically reviewed by the brokerage’s principal broker, who is required to make written submissions to the brokerage if the policies and procedures are not adequate.

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

• submitting an annual return for the 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;
• submitting the attestation that the brokerage did not receive any money, except that relating to fees or remuneration, within 90 days of the brokerage’s fiscal year-end;
• ensuring E&O insurance with an approved provider is maintained.

Please refer to the Registration and Licensing System (RLS) information for instructions on how to complete online filings.

In addition to the annual requirements, mortgage brokerages need to comply with the ongoing notification requirements to the Superintendent, including:

• notification must be provided within 7 days if a broker or associate is no longer authorized to broker mortgages on behalf of the brokerage;
• notification must be provided within 7 days of a change in directors or officers, a change in business locations or contact information, or if the brokerage believes there may be reasonable grounds that the Superintendent could determine that the an associate or broker is not suitable for licensing / continued licensing is objectionable.

There are other notification requirements in the legislation. The brokerage must ensure it is familiar with these requirements, and provides these notifications within the required timeframe. Please refer to the Registration and Licensing System (RLS) information for instructions on how to update your account online.

Only mortgage brokerages with endorsements are allowed to receive any money, other than that relating clearly as a payment for fees or other remuneration earned by the brokerage. Mortgage brokerages with endorsements have additional compliance and reporting obligations they need to meet.

Read the FAQ document for more information about compliance requirements.

 

Mortgage Brokerages with an Endorsement

A mortgage brokerage that obtains an endorsement needs to comply with the requirements mortgage brokerages without endorsements need to meet, as well as the additional provisions such as those relating to money handling, reporting, and financial security.

These requirements are complex, and mortgage brokerages that have an endorsement need to ensure they have a thorough understanding of all requirements.

Mortgage brokerages with an endorsement must maintain compliance with the financial security requirements set by the Superintendent. They must also provide the necessary annual filings, including audited financial statements and an audit report confirming compliance with the legislation. Additional information on these requirements is in the Annual Financial Statement and Audit Report Requirements document. Please refer to the Registration and Licensing System (RLS) information for instructions on how to complete online filings.