Government of Ontario: Financial Services Commission of Ontario

Administrator Annual Information Return for 2018

Mortgage Brokerages, Lenders and Administrators Act, 2006

This is a SAMPLE form

General information

Legal name of administrator:
Other authorized name:
Contact person:
Licence #:
Business type:
Contact name:

Principal business address
Street address:
Apt./Unit:
City:
Province:
Postal code:

Mailing address (check if same as Principal business address)
Street address:
Apt./Unit:
City:
Province:
Postal code:

Phone number:
Ext.:
Fax:
Contact email address:

NOTE: If any of the General information has changed, notify the Financial Services Commission of Ontario (FSCO) by email at contactcentre@fsco.gov.on.ca.

Welcome to the 2018 Annual Information Return (AIR). The Financial Services Commission of Ontario (FSCO) uses the information you provide in the AIR to help identify, assess and monitor risk in the mortgage administrator sector. The deadline to file the AIR is by March 31, 2019. The reporting period is January 1 to December 31, 2018. You must file even if you did not conduct any business during the reporting period.

Before You Proceed

Only the Principal Representative of the licensed mortgage administrator can complete and submit the AIR. If you fail to file the AIR on time, FSCO may take steps to suspend or revoke your mortgage administrator licence. You may also be subject to an administrative monetary penalty. Any missed deadline will be noted on your file, which may increase the level of future enforcement action taken by FSCO.

What You Need To Complete the AIR

Note: Consistent with FSCO’s role in protecting the public interest pursuant to s.3 (a) of the Financial Services Commission of Ontario Act, 1997, FSCO collaborates with other organizations, including fraud prevention organizations and law enforcement agencies, to help combat unlawful activity. Be advised that the information you provide in the AIR may be shared with such organizations.

On average, entering information for the AIR online will require approximately 60-90 minutes to complete. Should you require additional time, you may return at a later time and date to complete the AIR. It is recommended that you complete each page to ensure your data is saved properly.

If you have finished reading and understand the instructions, please proceed to begin.

Administrator Information

a. E&O Insurance provider:
AIG Insurance Company of Canada
Chubb Insurance Company of Canada
CUMIS General Insurance Company
Encon Group Inc.
Intact Insurance Company (Western Division)
International Insurance Company of Hannover Ltd. (A.M. Fredericks Underwriting Management Ltd.)
Liberty International Underwriters, (Liberty Mutual Insurance Company)
Lloyd’s Underwriters though RDA Inc.
Lloyd’s Underwriters through Holman Insurance Brokers Ltd.
Lloyd’s Underwriters through Special Risk Insurance Managers Ltd.
Lloyd’s Underwriters through Groupassur Inc.
Lloyd’s Underwriters through Catlin Canada
Lloyd’s Underwriters through Evolution Insurance Inc.
Lloyd’s Underwriters (Canadian Mortgage Brokers Association Sponsored Program)
Lloyd’s Underwriters as arranged by Trinity Underwriting Managers
Royal & Sun Alliance Insurance Company of Canada (for existing clients only)
Sovereign General Insurance Company
Sovereign General Insurance through Premier Canada Assurance Managers Ltd.
Zurich Insurance Company Limited
Other

a. (ii) Indicate the liability limits under your current E&O policy
Per Occurrence
$500,000
$1,000,000
Other (Specify amount)

Per Annual aggregate
$1,000,000
$2,000,000
Other (Specify amount)

1) Policy number:

2) Expiry date:

b) What is the administrator’s designated fiscal year-end? (Date)

c) Did the administrator file financial information pursuant to O. Reg. 193/08 s. 3? Yes/No

1) If yes, what date?

i. If not filed within 90 calendar days from the designated fiscal year-end, explain why.

2) If no, provide an explanation.

d) If the administrator has a brokerage licence, enter the brokerage licence number here:

e) Does the administrator have a mortgage brokerage or administrator licence in another jurisdiction/province? Yes/No
If yes, provide details.


Trust account information

The purpose of these questions is to verify compliance with legal obligations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA).

1. Did the administrator have a trust account(s) under the MBLAA? Yes/No

1 a) If no, explain:

If yes:
1 b) How many MBLAA trust accounts did the administrator have as at December 31, 2018?

1 c) Of the total number, how many MBLAA trust accounts did the administrator open during the reporting period:

1c/i) Did the administrator obtain prior written consent from the Superintendent pursuant to O. Reg. 189/08, s. 34 (2)? Yes/No

1c/ii) If no, explain why:

1 d) Did the administrator reconcile all of its MBLAA trust accounts? Yes/No

1d/i) If no, explain why:

1e) Was interest earned from monies on deposit in your trust account fully credited to the buyer/investor? Yes/No

1e/i) If no, explain why:

2. Was there a shortfall, at any time, in any of the MBLAA trust accounts? Yes/No/Not applicable

If yes, provide the following information:

2a)

Date Amount Corrected When Reported to
Superintendent
Comment
  $ Yes/No   Yes/No  
  $ Yes/No   Yes/No  
  $ Yes/No   Yes/No  
  $ Yes/No   Yes/No  

Other shortfalls:


Supervision of Operations

The purpose of these questions is to determine whether the administrator’s operations are organized in a way that facilitates supervision of its own operations and examination/inspection planning by FSCO.

3. Indicate the total number of owners of the brokerage, including any Directors and Officers, as at December 31, 2018.
Select 1 to 10/ 10+/ Publically traded company

List any owners of the administrator, other than the Directors or Officers, as at December 31, 2018.

If more than five, list the top five owners, based on the greatest percentage of ownership.

If the brokerage is a publically traded company, insert “Shareholders” in the “Owner’s legal name” column.

Owner's legal name Percentage owned
   
  Auto Sum

3 b) Where was the administrator's head office in Canada as at December 31, 2018?
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland and Labrador
Northwest Territories
Nova Scotia
Nunavut
Ontario
Prince Edward Island
Quebec
Saskatchewan
Yukon

4. Provide the total number of offices for each Ontario region as at December 31, 2018, as applicable:

Ontario Region # of Offices
Central Ontario (L/M)*  
Southwestern Ontario (N)  
Eastern Ontario (K)  
Northern Ontario (P)  
Total # of Offices  
* L or M, N, K, P is the first letter of the postal code for each region respectively

4 a) List the top five locations by the number of offices, as applicable:

No. City/Town (i) # of Offices (ii)
1.    
2.    
3.    
4.    
5.    

5. Did the administrator administer mortgages in other Canadian provinces/territories? Yes/No

5 a) If yes, provide the following information for each province/territory, as applicable:

Canadian
Province/Territory
% of #
Mortgages
% of $
Mortgages
Alberta    
British Columbia    
Manitoba    
New Brunswick    
Newfoundland and Labrador    
Nova Scotia    
Northwest Territories    
Nunavut    
Ontario    
Prince Edward Island    
Quebec    
Saskatchewan    
Yukon    
Total
Auto
Auto


Portfolio Details/Information

The purpose of these questions is to gather marketplace statistics.

6. Provide the following information on the administrator mortgage portfolio during the reporting period:
Total # of mortgages under administration: (6a)

Total of $ value of mortgages under administration: (6b)

Total # of investors the administrator transacted with during the reporting period: (6c)

Total # of mortgages in arrears: (6d)

Total $ value of mortgages in arrears: (6e)

Total # of mortgages in arrears where foreclosure/power of sale proceedings commenced: (6f)

Total $ value of mortgages in arrears where foreclosure/power of sale proceedings commenced: (6g)

7. NOTE: Question 7 is intended for information gathering purposes only, and not for compliance purposes.

Did the administrator operate a Mortgage Investment Corporation (MIC) during the reporting period? Yes/No

NOTE: For the purpose of the AIR, a Mortgage Investment Corporation (MIC) is an investment/lending company designed specifically for mortgage investing or lending, in Canada, and governed by the Income Tax Act. The MIC is organized for investing in pools of mortgages, primarily residential, and manages a diversified and secured portfolio of mortgages. Profits generated by the MIC are distributed to its shareholders according to their proportionate share.

8. Did the administrator administer any private mortgages? Yes/No

8 a) If yes, complete the following:
# of mortgages:
$ of mortgages:
# of private lenders:

8 b) List the top three (3) private lenders the administrator administrated for based on the value of mortgages:
Name:
# Mortagages:
$ Mortgages:

9. Did the administrator administer any non-qualified syndicated mortgages? Yes/No

9 a) If yes, complete the following:
# of mortgages:
$ of mortgages:
# of syndicates/lenders :

9 b) List the top three (3) syndicates/lenders the administrator administrated for based on the value of mortgages:
Name:
# Mortagages:
$ Mortgages:

Qualified syndicated mortgage: A syndicated mortgage that meets all of the following criteria:

  1. It is negotiated or arranged through a mortgage brokerage.
  2. It secures a debt obligation on property that,
    1. is used solely for residential purposes,
    2. includes no more than a total of four units, and
    3. if used for both commercial and residential purposes, includes no more than one unit that is used for commercial purposes.
  3. At the time the syndicated mortgage is arranged, the amount of debt it secures, together with all other debt secured by mortgages on the property that have priority over, or the same priority as, the syndicated mortgage, does not exceed 90 per cent of the fair market value of the property relating to the mortgage, excluding any value that may be attributed to proposed or pending development of the property.
  4. It is limited to one debt obligation whose term is the same as the term of the syndicated mortgage.
  5. The rate of interest payable under it is equal to the rate of interest payable under the debt obligation.

A syndicated mortgage that secures a debt obligation incurred for the construction or development of property is not a qualified syndicated mortgage.

Non-qualified syndicated mortgage: A syndicated mortgage which does not meet the requirements of a qualified syndicated mortgage.

9c) Does the administrator have in place, policies and procedures which relate specifically to the disbursement of funds to the borrower for a non-qualified syndicated mortgage? Yes/No

Explain: (Regardless of whether yes or no)


Securitization

10. Did the administrator arrange or participate in arranging any securitization facilities? Yes/No

10 a) If yes, complete the following:
# of instruments:
$ of instruments

11. Did the administrator make securitization sales? Yes/No

11 a) If yes, complete the following:
# of instruments:
$ of instruments:

NOTE: Securitization in questions 10 and 11 means providing mortgages for, or otherwise arranging pools of mortgages in connection with, the creation of mortgage-backed securities.

Records Information

12. What format are your required records stored in? (check all that apply) Electronic/Paper

12 a) Were the required records retained at the administrator's principal place of business in Ontario? Yes/No

If not:
12 b) Was the Superintendent notified? Yes/No

12 b)i) If no, explain why:
    
12 c) What is the retrieval lead time required to access your files?
Electronic Records: Same day/1-3 days/Over 3 days
Paper Records: Same day/1-3 days/Over 3 days


Unimpaired Working Capital

13. Did the administrator maintain the required $25,000 of unimpaired working capital or such other arrangement as approved by the Superintendent, at all times throughout the year? Yes/No

13. a) If no, explain:


Complaints and Complaint Handling

14. Name of the person(s) designated to receive complaints for the administrator:

15. Total number of written complaints received by the administrator during the reporting period:

15 a) Of the total written complaints received, how many were responded to, as required by legislation? (NOTE: The administrator must respond, in writing, to all written complaints that are received.)

15 b) Of the total written complaints received, how many were resolved as at December 31, 2018? (NOTE: For the purpose of the AIR, resolved means the administrator has addressed and responded in writing to all concerns raised by the complainant.)


Suitability

The purpose of these questions is to help determine if the mortgage administrator is suitable to continue to be licensed.

16. Were any E&O claims made against the administrator during the reporting period in any Canadian jurisdiction? Yes/No

16 a) If yes, how many claims?

17. Were any claims against the administrator paid by its E&O insurance carrier or bonding company in any Canadian jurisdiction, during the reporting period? Yes/No

If yes:
17 a) How many claims were paid out?

17 b) Provide a brief explanation:

18. During the reporting period, was a complaint made against the administrator 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? Yes/No

18 a) If yes, provide a brief explanation:

19. During the reporting period, was the administrator fined or were any monetary penalties imposed by any Canadian financial services regulator excluding FSCO? Yes/No

19 a) If yes, provide a brief explanation:

20. During the reporting period, did the administrator have any unpaid fines/monetary penalties owing to any Canadian financial services regulator, excluding FSCO? Yes/No

20 a) If yes, provide a brief explanation:

21. During the reporting period, was the administrator subject to any charges laid under the laws of any Canadian province/territory? Yes/No

21 a) If yes, provide a brief explanation:

21 b) During the reporting period, was the administrator fined or otherwise sanctioned by any Provincial/Federal courts? Yes/No
If yes, provide a brief explanation:

22. During the reporting period, were any licences the administrator held from a regulatory body/professional organization revoked or suspended? Yes/No

22 a) If yes, provide a brief explanation:

23. Did the administrator conduct any other business from the business premises? Yes/No

23 a) If yes, describe:

23 b) During the reporting period, was the administrator named in a lawsuit (Statement of Claim, Counterclaim or Third-party Claim)?

23 c) If yes, provide a brief explanation:




Reporting changes

24. Did the administrator open any offices during the reporting period? Yes/No

24a) If yes, how many offices were opened?

25. Did the administrator close any offices during the reporting period? Yes/No

25a) If yes, how many offices were closed?

26. Did any of the following information change during the reporting period, and were the changes reported to FSCO by email at contactcentre@fsco.gov.on.ca:
Check all that apply
Address for Service: Changed/Reported
Address of Principal Place of Business: Changed/Reported
Email, Phone or Fax: Changed/Reported
Officers or Directors: Changed/Reported
Partners in Partnership: Changed/Reported
E&O Insurance: Changed/Reported


Remuneration/Payments

27. Did the administrator have contingency commission (i.e. volume bonus) or payment arrangements with another person or entity? Yes/No

28. Provide the number of investors or lenders the administrator conducted business with during the reporting period:


Attestation

I,(Print name),
(Title of Position at the Administrator)
of (The Administrator)

CERTIFY THAT: I am aware that it is an offence to make a false statement to the Superintendent under the Mortgage Brokerages, Lenders and Administrators Act, 2006, and that the information provided in this Annual Information Return is true to the best of my knowledge and belief.
Signature
Date

NOTE: This Annual Information Return can only be completed by a sole proprietor, a general partner of a partnership or an officer of a corporation.

REMINDER: Before submitting this return, make sure that you have thoroughly reviewed all answers for accuracy. Once the AIR is submitted, no changes can be made.