Policies and Procedures -- Non-qualified Syndicated Mortgages

 
Bulletin
No. M-02/18
Mortgage
Brokering
 
To all mortgage brokerages in Ontario who are dealing in syndicated mortgages
​​

NOTE: The bulletins that are posted on this website are provided for historical reference purposes. The information in these bulletins is accurate on the date the information is published, but is subject to change and may be replaced by more recent bulletins.


An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person's or entity's licence on the Licensing Link section of FSCO's website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.


These bulletins may include forms that are no longer up-to-date or accurate. Readers should visit the forms section of the FSCO website, to ensure they are using the most recent version of a FSCO form.

​​​​​

The Financial Services Commission of Ontario (FSCO) is issuing this bulletin to remind mortgage brokerages that transact in non-qualified syndicated mortgages of their duty to establish policies and procedures (P&Ps) that guide their operations, outline practices for mortgage agents and brokers, and set the oversight of the principal brokers, including their responsibility to review the P&Ps, pursuant to the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA), specifically:
 

Commencing in fall 2018, FSCO will conduct desk reviews and/or on-site examinations of those mortgage brokerages that deal in non-qualified syndicated mortgages to ensure their P&Ps fully comply with all MBLAA requirements.

 

Effective July 1, 2018, amendments to O. Reg. 188/08 placed expanded obligations on mortgage brokerages dealing in non-qualified syndicated mortgages. A non-qualified syndicated mortgage is a syndicated mortgage that does not meet the definition of a qualified syndicated mortgage pursuant to subsection 1(2) of O. Reg. 188/08 [New Window] and that is not incurred for the construction or development of property pursuant to subsection 1(3) of O. Reg. 188/08 [New Window].

 

For further information regarding the amendments to O. Reg. 188/08, see:

 

FSCO expects that the P&Ps of mortgage brokerages that transact in non-qualified syndicated mortgages have been updated to adequately address expanded obligations under the MBLAA, including the use of three new Superintendent forms:

 

  • Form 3.0 – Investor/Lender Information for Investor/Lender in a Non-qualified Syndicated Mortgage  (Form 3.0 – Investor/Lender Information)
  • Form 3.1 – Suitability Assessment for Investor/Lender in a Non-qualified Syndicated Mortgage (Form 3.1 – Suitability Assessment)
  • Form 3.2 – Disclosure Statement for Investor/Lender in a Non-qualified Syndicated Mortgage (Form 3.2 – Disclosure Statement)

Please note that FSCO requires all mortgage brokerages to comply with all new and pre-existing obligations under the MBLAA. You may wish to review the MBLAA to ensure that your mortgage brokerage’s P&Ps are fully compliant. You may also wish to review FSCO Bulletin No. M-01/15 – Requirements for Promoting Syndicated Mortgage Investments to ensure your P&Ps outline promotional activities that comply with the MBLAA.

 

While this 2015 bulletin remains relevant, it does not specifically address the amendments to O. Reg. 188/08, effective July 1, 2018, which your P&Ps must address in addition to previously existing obligations.

 

Brian Mills

Chief Executive Officer and Superintendent of Financial Services

October 26, 2018

 
Follow FSCO on social media  

Outage Important information about the Canada Post labour disruption

hotline-en.jpg 

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