Government of Ontario: Financial Services Commission of Ontario

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:

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.

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)

Other shortfalls:

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.

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:

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

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:

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.

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.

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

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:

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.)

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:

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

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: