Regulations on Business Requirements that Went Into Effect January 1, 2009

FAQs for Mortgage Brokerages, Brokers and Agents

 

  1. Do Mortgage Brokerages need to meet any new business requirements on January 1, 2009
  2. Do Mortgage Brokers and Agents need to meet any new business requirements on January 1, 2009?
  3. Are any sections of Ontario Regulation 188/08: Mortgage Brokerages: Standards of Practice deferred until January 1, 2009?
  4. Are any sections of Ontario Regulation 187/08 - Mortgage Brokers and Agents: Standards of Practice deferred until January 1, 2009?

FAQs for Mortgage Administrators
 

  1. Do Mortgage Administrators need to meet any new business requirements on January 1, 2009?
  2. Are any sections of Ontario Regulation 189/08: Mortgage Administrators: Standards of Practice deferred until January 1, 2009?

1. Do Mortgage Brokerages need to meet any new business requirements on January 1, 2009?

As of January 1, 2009, each Mortgage Brokerage is required to:

 

  • List its Mortgage Brokerage licence number and the name in which it is licensed, on all public relations materials;
  • Verify the identity of borrowers, lenders and investors;
  • Disclose whether it is acting in the interest of the lender, the borrower, or both the borrower and lender;
  • Disclose the number of lenders that it has acted for in the previous fiscal year;
  • Disclose the fees it will receive from others, the fees payable to others, and the fees it will receive for making referrals;
  • Ensure the mortgage is suitable for the client;
  • Disclose the material risks of the mortgage, or the material risks for the investment in the mortgage;
  • Disclose its relationship with each lender, borrower and investor;
  • Disclose potential conflicts of interest;
  • Not collect advance fees for mortgages of $300,000 or less;
  • Establish policies and procedures to ensure its Mortgage Brokers and Agents comply with the Mortgage Brokerages, Lenders and Administrators Act, 2006; and
  • Establish a complaint process.

2. Do Mortgage Brokers and Agents need to meet any new business requirements on January 1, 2009?

As of January 1, 2009, each Mortgage Broker and Agent is required to disclose his/her name in public relations materials.

 

3. Are any sections of Ontario Regulation 188/08 - Mortgage Brokerages: Standards of Practice deferred until January 1, 2009?

Some sections of Ontario Regulation 188/08 - Mortgage Brokerages: Standards of Practice go into effect July 1, 2008, while other sections are deferred until January 1, 2009. The following sections of regulation 188/08 have been deferred until January 1, 2009:


s. 6       Use of name, etc., in public relations materials


s. 10     Duty to verify customer’s identity


s. 11     Duty to verify other party’s identity


s. 18     Disclosure re role of brokerage


s. 19     Disclosure of brokerage’s relationship with lenders


s. 21     Fees, etc., payable by others


s. 22     Fees, etc., payable by the brokerage to others


s. 23     Fees etc., receivable by brokerage for referral


s. 24     Duty re suitability of mortgage for customer


s. 25     Disclosure of material risks


s. 27     Disclosure of potential conflicts of interest


s. 37     Advance payment by borrower ($300,000 threshold)


s. 40     Duty to establish policies and procedures


s. 41     Duty to establish complaints process

4. Are any sections of Ontario Regulation 187/08 - Mortgage Brokers and Agents: Standards of Practice deferred until January 1, 2009?

 

Section 8 (use of name, etc., in public relations materials) of Ontario Regulation 187/08 - Mortgage Brokers and Agents: Standards of Practice has been deferred until January 1, 2009.  All other sections go into effect July 1, 2008. 

 

5. Do Mortgage Administrators need to meet any new business requirements on January 1, 2009?

 

As of January 1, 2009, each Mortgage Administrator will be required to: 


  • List its Mortgage Administrator licence number and the name in which it is licensed, on all public relations materials;
  • Verify the identity of lenders and investors;
  • Disclose the fees it will receive from others, the fees payable to others, and the fees it will receive for making referrals;
  • Disclose to each lender and investor its relationship with each borrower;
  • Disclose potential conflicts of interest;
  • Establish policies and procedures to ensure compliance with the Mortgage Brokerages, Lenders and Administrators Act, 2006; and
  • Establish a complaints process.  

6. Are any sections of Ontario Regulation 189/08: Mortgage Administrators: Standards of Practice deferred until January 1, 2009?

 

Some sections of Ontario Regulation 189/08 - Mortgage Administrators: Standards of Practice go into effect July 1, 2008, while other sections are deferred until January 1, 2009. The following sections of regulation 189/08 have been deferred until January 1, 2009:


s. 5       Use of name, etc., in public relations materials


s. 9       Duty to verify customer’s identity


s. 15     Fees, etc., payable by others


s. 16     Fees, etc., payable by the mortgage administrator to others


s. 17     Fees etc., receivable by mortgage administrator for referral


s. 19     Disclosure of mortgage administrator’s relationships


s. 20     Disclosure of potential conflicts of interest


s. 25     Duty to establish policies and procedures


s. 26     Duty to establish complaints process

 

 
Follow FSCO on social media  

Outage  Scheduled Online Service Disruption Notice
Please consult our outage schedule for more details.