Licensing Regulations Under the Mortgage Brokerages, Lenders and Administrators Act, 2006

Frequently Asked Questions

Licensing Regulations

1. What types of licences are required under the Mortgage Brokerages, Lenders and Administrators Act, 2006?
   
   
2. Where can I get a copy of the regulations?
   
   
3. Are new forms required for disclosure of information to borrowers and investors?
   
   
4. Do Mortgage Brokerages have different cost of borrowing disclosure requirements than banks or other financial institutions?
   
   
5. What is being done to fight mortgage fraud?
   

1. What types of licences are required under the Mortgage Brokerages, Lenders and Administrators Act, 2006?

Under the Mortgage Brokerages, Lenders and Administrators Act, 2006 there are four types of licences: 

• Mortgage Brokerage
• Mortgage Administrator
• Mortgage Broker
• Mortgage Agent

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2. Where can I get a copy of the regulations?

A link to the approved regulations (on e-Laws) is available on FSCO’s website.

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3. Are new forms be required for disclosure of information to borrowers and investors?

The Mortgage Brokerages, Lenders and Administrators Act, 2006 and regulations will set out the requirements for disclosure to borrowers, and investors.

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4. Do Mortgage Brokerages have different cost of borrowing disclosure requirements than banks or other financial institutions?

The cost of borrowing disclosure requirements are based on the federal-provincial harmonized rules.  Mortgage Brokerages have the same cost of borrowing disclosure requirements as banks, credit unions and insurers.

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5. What is being done to fight mortgage fraud?

Ultimately, fraud is a crime and a matter for the police.  However, the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act), will help reduce the risk of mortgage fraud to consumers.

• The Mortgage Brokerages, Lenders and Administrators Act requires Mortgage Agents to be licensed.  This licensing requirement will prevent unsuitable individuals from entering the industry.  It will also help remove those individuals who do business in an unlawful and dishonest manner.
• Under the Act, the Principal Broker assumes the role of Compliance Officer.  The Principal Broker also supervises the Brokerage's Mortgage Brokers and Agents.
• Under the Act, all Mortgage Brokerages and Administrators are required to have errors and omissions insurance, including coverage for fraudulent acts.  This insurance won’t eliminate or prevent fraud, but it will provide compensation for consumers who are victims of fraud.
• Under the Act, FSCO has more power to enforce compliance.
• Under the Act, standards of practice are outlined in the regulations. 

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