Appendix to 2016 Annual Information Return - Mortgage Brokerages and Administrators Results Summary Report

​Mortgage Brokerages

MORTGAGE BROKERAGE SECTOR SUMMARY

 

Summary

2014

2015

2016

Number of brokerages

1,148

1,165

1,170

Number of brokers

2,611

2,512

2,561

Number of full-time brokers

n/a

1,633

1,796

Number of agents

9,293

10,748

11,267

Number of full-time agents

n/a

5,737

6,706

Number of other staff

1,360

1,528

1,641

Total number of all mortgages

293,738

334,760

340,527

Total number of residential mortgages

285,526

323,675

330,185

Total number of commercial mortgages

5,002

6,877

7,767

Total number of other mortgages

3,210

4,223

2,575

Total number of conventional mortgages

158,078

186,957

197,004

Total number of high-ratio mortgages

135,660

141,566

137,182

Total number of sub-prime mortgages

24,669

25,160

28,138

Total dollar value of all mortgages  

$117,307,554,676

$134,046,785,882

$132,487,145,770

Total dollar value of residential mortgages

$94,542,452,047

$107,601,758,496

$107,498,366,710

Total dollar value of commercial mortgages

$21,918,362,859

$25,571,222,734

$24,128,169,580

Total dollar value of other mortgages

$846,739,770

$873,804,652

$860,609,480

Total dollar value of conventional mortgages

$71,025,632,396

$84,439,870,950

$85,376,130,968

Total dollar value of high-ratio mortgages

$46,281,922,280

$48,326,589,870

$44,990,391,897

Total dollar value of sub-prime mortgages

$7,009,347,394

$7,086,031,664

$8,219,521,406

Total number of mortgages funded by bank

125,372

117,204

123,723

Total number of mortgages funded by credit union

9,039

9,501

13,555

Total number of mortgages funded by mortgage investment corporation (MIC)

7,577

8,196

7,241

Total number of mortgages funded by private lender

17,090

21,340

21,203

Total number of mortgages funded by self-funding

71,913

107,971

109,631

Total number of mortgages funded by trust company

31,010

29,939

29,986

Total number of mortgages funded by other

31,737

40,566

35,188

Total dollar value of mortgages funded by bank

$51,940,871,689

$52,873,314,339

$45,599,062,366

Total dollar value of mortgages funded by credit union

$3,854,100,804

$5,486,557,335

$6,001,545,284

Total dollar value of mortgages funded MIC

$3,070,498,427

$4,346,761,019

$4,403,635,045

Total dollar value of mortgages funded by private lender

$6,016,924,899

$7,683,999,048

$8,525,183,717

Total dollar value of mortgages funded by self-funding

$24,499,363,587

$31,255,259,589

$32,788,475,333

Total dollar value of mortgages funded by trust company

$13,233,895,517

$14,302,295,607

$16,917,451,250

Total dollar value of mortgages funded by other

$14,691,899,753

$18,098,598,765

$18,251,792,775

Total number of brokerages with syndicated mortgage investment (SMI) transactions

81

94

105

Total number of SMI transactions

2,767

5,987

7,412

Total dollar value of SMI transactions

$3,732,642,788

$6,047,874,437

$6,630,571,417

 

ADDITIONAL MORTGAGE BROKERAGE AIR DATA

Types of lenders used to fund mortgages

 

2014

2015

2016

Mortgage type

Number
of broke-
rages

Percentage of total number of mortgages

Percentage of total dollar value of mortgages

Number
of Broke-
rages

Percentage of total number of mortgages

Percentage of total dollar value of mortgages

Number
of broke-
rages

Percentage of total number of mortgages

Percentage of total dollar value of mortgages

Bank

668

43%

44%

694

35%

39%

703

36%

34%

Credit union

344

3%

3%

365

3%

4%

380

4%

5%

MIC

188

3%

3%

225

2%

3%

247

2%

3%

Private lender

544

6%

5%

589

6%

6%

600

6%

6%

Self-funding

101

24%

21%

113

32%

23%

111

32%

25%

Trust company

569

11%

11%

549

9%

11%

541

9%

13%

Other

241

11%

13%

252

12%

14%

265

10%

14%

 

Lenders which funded more than 50 per cent of a brokerages mortgages

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Did the brokerage finance more than 50 per cent of its mortgage deals with one vendor?

Yes

249

22%

248

21%

235

20%

If yes, what category did the lender belong to?

Bank

68

6%

73

6%

68

6%

Credit union

8

1%

13

1%

9

1%

MIC

12

1%

22

2%

21

2%

Private lender

39

3%

28

2%

22

2%

Self-funding

31

3%

40

3%

41

4%

Trust company

19

2%

24

2%

24

2%

Other

72

6%

48

4%

50

4%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Mortgage Investment Corporations (MICs)

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Brokerages who reported MIC transactions.

188

16%

225

19%

247

21%

Total number of MIC transactions as percentage of total transactions.

7,577

3%

8,196

2%

7,241

2%

Total dollar value of MIC transactions as percentage of total mortgage value (millions).

$3,070

3%

$4,347

3%

$4,404

3%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Syndicated Mortgage Investments

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Brokerages that reported SMI transactions.

81

23%

94

26%

105

9%

Total number of SMI transactions and percentage of total transactions.

2,767

1%

5,987

2%

7,412

2%

Total dollar value of SMI transactions as percentage of total mortgage value (millions).

$3,733

3%

$6,048

4%

$6,631

5%

Total dollar value of residential SMI transactions as percentage of total residential mortgage value (millions).

$1,064

1%

$1,954

2%

$2,640

2%

Total dollar value of commercial SMI transactions as percentage of total commercial mortgage value (millions).

$2,244

9%

$3,636

14%

$3,530

15%

Total dollar value of other SMI transactions as percentage of total other mortgage value (millions).

$425

49%

$460

53%

$460

53%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Securitization

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage brokerage arranged or participated in arranging securitization facilities

8

0.7%

8

0.7%

5

0.4%

The mortgage brokerage made securitization sales

5

0.4%

7

0.6%

6

0.5%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Remuneration

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Did your brokerage accept non-monetary incentives from lenders? If yes, what kind of incentives?

Yes

293

26%

290

25%

278

24%

No

855

74%

875

75%

892

76%

If Yes, what kind of incentives?

Points

263

23%

255

22%

242

22%

Event tickets

89

8%

93

8%

92

8%

Gifts

66

6%

65

6%

67

6%

Trips

48

4%

41

4%

48

4%

Memberships

3

0%

3

0%

3

0%

Other

3

0%

0

0%

0

0%

Mortgage brokerages that offer credit cards or gift cards as remuneration.

Yes

51

4%

52

4%

50

4%

No

1,097

96%

1,113

96%

1,120

96%

Mortgage brokerages that have contingency commissions or payment arrangements with lenders.

Yes

472

41%

474

41%

480

41%

No

676

59%

691

59%

690

59%

Mortgage brokerages that have tri-party compensation agreements for payments of incentives other than money, between the brokerage, its brokers/agents, and other mortgage brokerages.

Yes

13

1%

16

1%

14

1%

No

1,135

99%

1,149

99%

1,156

99%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Errors and omissions (E&O) insurance

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Please indicate the liability limit under your current E&O policy (per occurrence).

$500,000

602

52%

598

51%

558

48%

$1 million

312

27%

309

27%

329

28%

Other

234

20%

258

22%

283

24%

Please indicate the liability limit under your current E&O policy (per annual aggregate).

$1 million

704

61%

688

59%

653

56%

$2 million

229

20%

241

21%

266

23%

Other

215

19%

236

20%

251

21%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Mortgage brokerage information

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage brokerage reported a franchise.

329

29%

336

29%

336

29%

The mortgage brokerage also had a mortgage administrator (dual) licence.

77

7%

84

7%

94

8%

The mortgage brokerage or its related persons/entities are members of Mutual Fund Dealers Association (MFDA).

7

1%

27

2%

39

3%

The mortgage brokerage or its related persons/entities are registered as an insurance brokerage under insurance legislation in any Canadian jurisdiction.

14

1%

51

4%

58

5%

The mortgage brokerage or its related persons/entities are registered as a dealer or adviser under securities regulation in any Canadian jurisdiction.

22

2%

40

3%

46

4%

The mortgage brokerage or its related persons/entities are registered as a real estate brokerage under the Real Estate Business Brokerage Act.

166

14%

260

22%

273

23%

Does the brokerage or its affiliate hold any other licences?

New question in 2015

340

29%

366

31%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Inactive brokerages

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Brokerages that did not close any deals and whose primary line of business was not mortgage brokering

Real estate

82

53%

73

50%

63

43%

Other

50

32%

44

30%

43

30%

Advisory services/consulting

11

7%

10

7%

13

9%

Mortgage referrals

9

6%

12

8%

9

6%

Administering mortgages

0

0%

1

1%

4

3%

Legal services

3

2%

4

3%

3

2%

Construction

1

1%

1

1%

1

1%

Accounting

0

0%

0

0%

1

1%

Dealing/trading

0

0%

0

0%

0

0%

Mortgage lending/investing

0

0%

0

0%

0

0%

Total inactive brokerages

156

100% 

145

100% 

137

100% 

 

Trust accounts

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage brokerage has a trust account(s) under the MBLAA.

99

9%

107

9%

111

9%

The mortgage brokerage opened a trust account during the reporting period.

16

16%

20

19%

23

21%

For trust accounts opened during the reporting period, the mortgage brokerage obtained prior written consent from the Superintendent of Financial Services to open a trust account pursuant to O. Reg. 188/08, s. 50 (2).

10

63%

17

85%

17

74%

For mortgage brokerages with trust accounts, the mortgage brokerage reconciled all of its MBLAA trust accounts.

97

98%

105

98%

110

99%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Mortgage brokerage office locations

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Where was the brokerage’s head office in Canada as at December 31 (of the reporting year)?

Alberta

13

1%

15

1%

17

1%

British Columbia

23

2%

27

2%

31

3%

Manitoba

2

0%

1

0%

1

0%

New Brunswick

1

0%

1

0%

1

0%

Nova Scotia

1

0%

1

0%

1

0%

Ontario

1,104

97%

1,116

96%

1,117

95%

Quebec

4

0%

4

0%

2

0%

Total

1,148

100%

1,165

100%

1,170

100%

Location of mortgage brokerages’ head offices by Ontario region as at December 31 (of the reporting year)?

Central Ontario (L)

409

37%

423

38%

434

39%

Eastern Ontario (K)

70

6%

67

6%

66

6%

Toronto Metropolitan (M)

503

46%

509

46%

507

45%

Southwestern Ontario (N)

96

9%

93

8%

87

8%

Northern Ontario (P)

26

2%

24

2%

23

2%

Total

1,104

100%

1,116

100%

1,117

100%

Total number of offices for each Ontario region as at December 31 (of the reporting year)?

Eastern Ontario (K)

205

11%

199

11%

195

10%

Central Ontario (L)

679

36%

651

35%

697

36%

Toronto Metropolitan (M)

711

39%

741

39%

755

39%

Southwestern Ontario (N)

61

3%

62

3%

48

3%

Northern Ontario (P)

209

11%

223

12%

217

11%

Total

1,865

100%

1,876

100%

1,912

100%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

Supervision of mortgage brokers and agents in brokerage

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Steps taken to ensure adequate supervision

The mortgage brokerage reviewed its policies and procedures

1,055

92%

1,088

93%

1,097

94%

Onsite supervisor/manager

988

86%

1,011

87%

1,027

88%

Policies and procedures/best practices

976

85%

1,021

88%

1,030

88%

File review/file audits

932

81%

973

84%

991

85%

Regular meetings (monthly, quarterly etc.)

849

74%

890

76%

910

78%

Training/support (phone/email/fax/online)

843

73%

883

76%

905

77%

Other

107

9%

115

10%

107

9%

Total mortgages brokerages

1,148

 

1,165

 

1,170

 

 

 

2014

2015

2016

 

Terminated for cause

Reported using Licensing Link

Terminated for cause

Reported using Licensing Link

Terminated for cause

Reported using Licensing Link

During the reporting period, did the brokerage terminate a broker/agent for cause?

Yes

25

24

24

22

23

21

No

1,123

2

1,141

2

1,147

2

Total mortgages brokerages

1,148

 

1,165

 

1,170

 

 

Mortgage brokerage licence suitability

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage brokerage reported complaint(s) made against the mortgage brokerage to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, on allegations of fraud, theft, deceit, misrepresentation, forgery, or similar conduct.

10

1%

14

1%

16

1%

The mortgage brokerage was fined or there were monetary penalties imposed by a Canadian financial services regulator excluding FSCO.

2

0%

5

0%

0

0%

The mortgage brokerage had unpaid fines/monetary penalties owing to a Canadian financial services regulator, other than FSCO.

0

0%

0

0%

0

0%

The mortgage brokerage was fined or there were monetary penalties imposed by a provincial/federal court.

1

0%

1

0%

1

0%

The mortgage brokerage was subject to charges laid under the laws of a Canadian province/territory.

0

0%

0

0%

3

0%

The mortgage brokerage held licences from other regulatory bodies/professional organizations that were revoked or suspended.

1

0%

0

0%

7

1%

Total mortgage brokerages

1,148

 

1,165

 

1,170

 

 

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​Mortgage Administrators

ADDITIONAL MORTGAGE ADMINISTRATOR AIR DATA

Mortgage administrator information

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage administrator filed financial information pursuant to O. Reg. 193/08 s. 3

78

64%

91

65%

111

68%

Total number of administrators

122

 

139

 

164

 

 

Unimpaired working capital

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage administrator maintained the required $25,000 of unimpaired working capital (or another arrangement, as approved by the Superintendent), at all times throughout the year.

121

99%

137

99%

163

99%

Total number of administrators

122

 

139

 

164

 

 

Trust accounts

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Did the administrator have a trust account(s) under the MBLAA?

Yes

106

87%

119

86%

149

91%

No

16

13%

20

14%

15

9%

Total mortgage administrators

122

 

139

 

164

 

 

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

For trust accounts opened during the reporting period, the administrator obtained prior written consent from the Superintendent of Financial Services to open a trust account pursuant to O. Reg. 189/08, s. 34 (2).

Yes

6

21%

7

15%

8

19%

No

22

79%

37

85%

35

81%

Mortgage administrators who opened trust account(s) during the reporting period

28

 

44

 

43

 

 

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

For administrators with trust accounts, did the administrator reconcile all of its MBLAA trust accounts? 

Yes

104

98%

118

99%

147

99%

No

2

2%

1

1%

2

1%

Administrators with trust accounts

106

 

119

 

149

 

 

 

2014

2015

2016

 

Number of short falls

Total dollar value of shortfalls

Number of short falls

Total dollar value of shortfalls

Number of short falls

Total dollar value of shortfalls

Was there a shortfall, at any time, in any of the MBLAA trust accounts?

Yes

4

$1,290,165

4

$98,177

1

$430,508

No

102

$0

114

$0

163

$0

 

Portfolio details/information

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage administrator operated a MIC during the reporting period

24

20%

34

24%

39

24%

The mortgage administrator administered private mortgages

62

51%

67

48%

84

51%

The mortgage administrator administered syndicated mortgages

55

45%

64

46%

66

40%

Total mortgage administrators

122

 

139

 

164

 

 

Securitization

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage administrator arranged or participated in arranging securitization facilities

4

3%

5

4%

4

2%

The mortgage administrator made securitization notes

2

2%

5

4%

4

2%

Total mortgage administrators

122

 

139

 

164

 

 

Remuneration/payments

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage administrator had contingency commission payment arrangements with another person or entity.

2

2%

4

3%

9

5%

Total mortgage administrators

122

 

139

 

164

 

 

Mortgage administrator office locations

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

Where was the administrator’s head office in Canada as at December 31, 2016?

Alberta

3

2%

4

3%

3

2%

British Columbia

6

5%

7

5%

9

5%

Manitoba

3

2%

3

2%

3

2%

Ontario

108

89%

123

88%

148

90%

Quebec

2

2%

2

1%

1

1%

Total number of offices for each Ontario region as at December 31, 2016?

Eastern Ontario (K)

12

9%

13

6%

13

8%

Central Ontario (L/M)*

112

84%

126

86%

145

84%

Southwestern Ontario (N)

9

7%

10

7%

13

8%

Northern Ontario (P)

1

1%

1

1%

1

1%

Total mortgage administrators

122

 

139

 

164

 

 

Licence suitability

 

2014

2015

2016

 

Number

Percentage

Number

Percentage

Number

Percentage

The mortgage administrator reported any E&O claim(s) that were made against it during the reporting period in any Canadian jurisdiction.

2

2%

2

1%

0

0%

The mortgage administrator reported any claim(s) that were made against it and paid by its E&O insurance carrier or bonding company in any Canadian jurisdiction.

0

0%

0

0%

0

0%

The mortgage administrator reported any complaint(s) that were made against it to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, on fraud, theft, deceit, misrepresentation, forgery or similar conduct.

0

0%

0

0%

1

1%

The mortgage administrator was fined or there were monetary penalties imposed by another Canadian financial services regulator, excluding FSCO.

1

1%

3

2%

0

0%

The mortgage administrator had unpaid fines/monetary penalties owing to another Canadian financial services regulator, other than FSCO.

0

0%

0

0%

0

0%

The mortgage administrator was subject to charges that were laid under the laws of a Canadian province/territory.

0

0%

0

0%

0

0%

The mortgage administrator had its licence(s) from another regulatory body/professional organization revoked or suspended.

0

0%

0

0%

0

0%

The mortgage administrator conducted other business from its premises.

0

0%

34

24%

49

30%

Total mortgage administrators

122

 

139

 

164

 

 

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