FAQs on Records Management & Fees
FAQs on Records Management
What type of records are Mortgage Brokerages required to keep?
How long do records need to be retained?
Where do records need to be stored?
Can records be stored electronically?
Do electronic records need to be stored in the Mortgage Brokerage’s principal place of business?
Are photocopied documents acceptable or are originals required?
FAQs on Fees
Are any fees allowed to be collected up-front?
1. What type of records are Mortgage Brokerages required to keep?
Each Mortgage Brokerage is required to keep the following records:
Complete and accurate financial records of its mortgage activities in Ontario, which must be kept separate or distinguishable from any trust funds or other assets.
Every mortgage application, instrument and renewal agreement that is received or arranged by the Mortgage Brokerage.
Any other agreement that the Mortgage Brokerage enters in the course of mortgage lending, or while dealing/trading in mortgages.
All documents and written information given to or obtained from a borrower, lender, investor, or any other person/entity.
2. How long do records need to be retained?
A Mortgage Brokerage is required to retain:
All records that relate to a mortgage or mortgage renewal for at least six years after the mortgage or mortgage renewal’s term expires.
All records that relate to the purchase, sale or trade of a mortgage for at least six years after the trade completion date or expiry of the transaction.
All other records, including all financial records, for at least six years.
3. Where do records need to be stored?
Each Mortgage Brokerage is required to retain and store its records in its principal place of business in Ontario, or at another location in Ontario, if the Brokerage notifies FSCO’s Superintendent.
4. Can records be stored electronically?
Records can be stored electronically as long as the Mortgage Brokerage can retrieve its records in both electronic and paper format promptly upon request, and they are clear and easy to understand.
5. Do electronic records need to be stored in the Mortgage Brokerage’s principal place of business?
Records in electronic format do not need to be stored at the Mortgage Brokerage’s principal place of business, as long as they can promptly be retrieved upon request.
6. Are photocopied documents acceptable or are originals required?
For audit purposes, Mortgage Brokerages are required to retain complete and accurate records. Photocopies are acceptable in cases where the client requested that the original documents be returned. A Mortgage Brokerage should not unreasonably withhold any deed, instrument, or other document from its owner.
7. Are any fees allowed to be collected up-front?
Beginning January 1, 2009, if the principal amount of a mortgage is $300,000 or less, a Mortgage Brokerage cannot require or accept an advance payment or deposit for services to be rendered, or expenses to be incurred by the Brokerage or any other person. Until December 31, 2008, this applies to mortgages with a principal amount of $200,000 or less.