FAQs on the Education Requirement for Mortgage Agents with Conditional Licences

FAQs for Mortgage Agents

 

  1. What is the deadline for completing a mortgage agent course if I have a conditional mortgage agent licence?
  2. Where can I find a list of approved mortgage agent course providers?
  3. How do I provide proof that I have passed a mortgage agent course?
  4. I am currently enrolled in a mortgage agent course, but it won’t be complete until after June 30, 2009.  Will I lose my mortgage agent licence?
  5. Can I get an extension on completing the mortgage agent course?
  6. I plan to leave the mortgage brokering industry before June 30, 2009.  What will happen if I don’t complete the mortgage agent course?

FAQs for Principal Brokers

 

  1. How can I verify that all of my brokerage’s mortgage agents have met the education requirements?
  2. Do I need to keep copies of mortgage agent course transcripts and certificates?
  3. How will FSCO know if a mortgage agent has successfully passed an approved mortgage agent course?
  4. What should I do if a mortgage agent does not complete an education course by June 30, 2009?
  5. Why does FSCO want me to sign a declaration form?
  6. When will FSCO conduct its education audit?
  7. Why do I need to verify if the mortgage agent has met this licensing requirement?
  8. Why do I need to complete the Report to FSCO by Principal Broker?
  9. Why did FSCO mail these documents to me, instead of sending them by e-mail?
  10. If there are errors on the Report to FSCO by Principal Broker, how do I make corrections?
  11. How do I confirm if an agent has taken the required mortgage agent course?
  12. How did FSCO inform conditionally licensed agents of the education requirement?
  13. What will FSCO do with the information I provide on the Report to FSCO by Principal Broker?

    1. What is the deadline for completing a mortgage agent course if I have a conditional mortgage agent licence?

    In order to keep your mortgage agent licence and meet the education requirements, you must successfully complete an approved mortgage agent course by June 30, 2009.

    2. Where can I find a list of approved mortgage agent course providers?

    A list of approved mortgage agent course providers can be found on FSCO’s Approved Mortgage Agent Education Programs web page.

    3. How do I provide proof that I have passed a mortgage agent course?

    You should provide your principal broker with a copy of your mortgage agent course transcript or certificate, to prove that you have passed the course.

     

    Please do not provide your mortgage agent course transcript or certificate to FSCO, unless requested by FSCO.  Your principal broker will be responsible for verifying that you have successfully completed the mortgage agent course.

    4. I am currently enrolled in a mortgage agent course, but it won’t be complete until after June 30, 2009. Will I lose my mortgage agent licence?

    Yes, FSCO requires all individuals with conditional mortgage agent licences to successfully complete an approved mortgage agent course by June 30, 2009.  This is a licensing requirement that was communicated to you when your conditional mortgage agent licence was issued in 2008.  If you don’t complete the education course in time, you will no longer be authorized to deal or trade in mortgages on behalf of your mortgage brokerage after June 30, 2009. 

    5. Can I get an extension on completing the mortgage agent course?

    No, when FSCO granted you a conditional mortgage agent licence in 2008, you agreed to complete an approved mortgage agent course by June 30, 2009.  Since you have already had one year to complete the course, you will not be granted an extension. If you don’t complete the education course in time, you will no longer be authorized to deal or trade in mortgages on behalf of your mortgage brokerage after June 30, 2009. 

    6. I plan to leave the mortgage brokering industry before June 30, 2009.  What will happen if I don’t complete the mortgage agent course?

    If you do not complete an approved mortgage agent course by June 30, 2009 your mortgage agent licence will no longer be in effect after that date.  If you lose your mortgage agent licence and wish to work as a mortgage agent at a later date, you will need to reapply for a mortgage agent licence. 

     

    If you reapply for a mortgage agent licence in the future, your failure to meet this requirement will be taken into consideration when FSCO reviews your suitability to hold a licence. 

     

    Your failure to comply with a licensing requirement may also be subject to enforcement action.

    FAQs for Principal Brokers

    7. How can I verify that all of my brokerage’s mortgage agents have met the education requirements?

    Mortgage agents with conditional licences should provide you (the principal broker) a copy of their course transcript or certificate to prove that they have passed an approved mortgage agent course by June 30, 2009. 

    8. Do I need to keep copies of mortgage agent course transcripts and certificates?

    Yes, you must keep a copy of each mortgage agent course transcript or certificate on file.  You may be asked for copies of mortgage agent course transcripts or certificates if FSCO conducts an education audit in the future.

    9. How will FSCO know if a mortgage agent has successfully passed an approved mortgage agent course?

    In order to ensure that all mortgage agents have successfully passed an approved mortgage agent course, FSCO will:

     

    • Ask principal brokers to sign a declaration form, which states that all of the brokerage’s mortgage brokers and agents are qualified to deal or trade in mortgages.
    • Ask principal brokers to provide a list of mortgage agents that have passed an approved education course, along with the names of the education course providers and dates that the courses were completed.
    • Conduct an education audit to verify if agents have successfully completed an education course by June 30, 2009.

    10. What should I do if a mortgage agent does not complete an education course by June 30, 2009?

    An individual who does not complete an approved education course by June 30, 2009 will no longer be qualified to work as a mortgage agent.  Since you are the principal broker, you are responsible for:

     

    • Verifying whether or not the individual has completed an approved mortgage agent course.
    • Notifying the individual that he/she cannot deal or trade in mortgages on behalf of your brokerage after June 30, 2009, if he/she has not completed a mortgage agent course.
    • Terminating the individual in Licensing Link.

    11. Why does FSCO want me to sign a declaration form?

    FSCO will send you a declaration form if your mortgage brokerage currently employs mortgage agents with conditional licences.  As the principal broker, you are responsible for complying with Ontario Regulation 410/07 which requires you to:

     

    • Take reasonable steps to ensure that each mortgage broker and agent complies with all of the requirements under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act); and
    • Deal with any contraventions of the Act.

    By signing the form, you are declaring that:

     

    • Your mortgage brokerage and all of its brokers and agents are complying with the requirements of the Act; and
    • You have verified that all of your brokerage’s mortgage brokers and agents have met FSCO’s education requirements.

    12. When will FSCO conduct its education audit?

    In July 2009, FSCO plans to conduct an education audit to verify if mortgage agents have successfully completed an approved education course.

    13. Why do I need to verify if the mortgage agent has met this licensing requirement?

    As the principal broker for your mortgage brokerage, you are responsible for taking reasonable steps to ensure that each agent is authorized to deal or trade in mortgages on behalf of your brokerage.  You also need to make sure that all of your brokerage’s agents are complying with every requirement under the Mortgage Brokerages, Lenders and Administrators Act (MBLAA). If your brokerage does not take reasonable steps to deal with contraventions of the MBLAA, you may be subject to enforcement action.

    14. Why do I need to complete the Report to FSCO by Principal Broker?

    According to the Financial Services Commission of Ontario’s (FSCO) records, your mortgage brokerage employs one or more individuals that were issued a mortgage agent licence on the condition that they successfully complete an approved mortgage agent education course by June 30, 2009.  To determine whether these agents met the licence condition by June 30, 2009, FSCO is requesting information under the authority of section 29(2) of the Mortgage Brokerages, Lenders and Administrators Act (MBLAA).

     

    As the principal broker for your mortgage brokerage, FSCO requires you to complete and sign a form entitled Report to FSCO by Principal Broker.  As part of your responsibilities in complying with Ontario Regulation 410/07, you must take reasonable steps to ensure that each mortgage broker and agent complies with all of the requirements under the MBLAA, and deal with any contraventions of the MBLAA.

    15. Why did FSCO mail these documents to me, instead of sending them by e-mail?

    You received these documents in paper format because each mortgage brokerage has different mortgage agents listed on its Report to FSCO by Principal Broker.  As the principal broker for your mortgage brokerage, you also need to sign and date the report.

    16. If there are errors on the Report to FSCO by Principal Broker, how do I make corrections?

    If FSCO’s list of conditionally licensed agents is inaccurate or incomplete, or if any other agents are missing, please provide updated information on the attached Conditionally Licensed Agent Update Form. 

    17. How do I confirm if an agent has taken the required mortgage agent course?

    Each education provider issued certificates to individuals who successfully passed a mortgage agent course.  To ensure due diligence, you should request that your mortgage agents provide you a copy of their certificates.  If you have any concerns about these certificates, please contact the course providers.

    18. How did FSCO inform conditionally licensed agents of the education requirement?

    Conditionally licensed mortgage agents were informed of the education requirement and deadline on the mortgage agent licence application.  FSCO also sent out reminders to these agents and their principal brokers through its Mortgage Broker e-Info Newsletter, several e-mails and its website.  This information was also shared with mortgage broker industry associations, who communicated this information to their members.

    19. What will FSCO do with the information I provide on the Report to FSCO by Principal Broker?

    Over the next few months, FSCO will complete an education audit of all conditionally licensed mortgage agents.  This involves comparing the course completion information you provide on the Report to FSCO by Principal Broker to information from the approved mortgage agent education course providers.  If any discrepancies are found, FSCO will contact the corresponding principal brokers to assist in resolving the issues.

     
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