New Licensing Requirements In Effect July 1, 2008
TORONTO, June 30 /CNW/ -
The Ontario Government has taken an important step to enhance consumer
protection in the mortgage brokering industry. The new Mortgage Brokerages,
Lenders and Administrators Act, 2006 comes into effect on July 1, 2008.
The act provides improved disclosure for consumers. For example,
brokerages will be required to disclose material risks of each mortgage,
potential conflicts of interest, and expanded information about fees.
Brokerages will be required to establish policies and procedures to implement
the new disclosure requirements by January 1, 2009.
Consumers will be able to access a new public register of licensed
mortgage brokerages, administrators, brokers and agents on FSCO's website.
Requirements under the new act:
- Businesses and individuals who conduct mortgage brokering activities
in Ontario are to be licensed with the Financial Services Commission
- Mortgage brokers and agents now need to meet specific education,
experience and suitability requirements.
- Mortgage brokerages are now required to appoint a principal broker to
ensure their brokers and agents are adequately supervised and
requirements are followed.
- Mortgage brokerages are now more responsible for the actions of their
brokers and agents.
- Mortgage brokers will, for example, be restricted from tied selling
and will have to disclose the brokerage's relationships with lenders.
For valuable consumer resources and a full list of mortgage brokerages,
administrators, brokers and agents, visit the Financial Services Commission of
Ontario website at: www.fsco.ca
"Buying a home is likely the most important financial decision a family
will make," said Minister Duncan, "The updated requirements for mortgage
professionals will encourage more competition and enhance professionalism in
the mortgage brokering industry."
- The Financial Services Commission of Ontario (FSCO) is an agency of
the Ministry of Finance.
- FSCO is responsible for regulating the activities of all mortgage
brokerages, administrators, brokers and agents throughout the
- The act and regulations require all mortgage brokers and agents in
Ontario to be at least 18 years of age; work for only one mortgage
brokerage; meet specific education requirements; conduct all
activities in accordance with the new act and regulations; and be
adequately supervised by a principal broker.
Visit the Financial Services Commission of Ontario website at www.fsco.ca
Visit the Ministry of Finance website at www.fin.gov.on.ca
Visit the Canadian Association of Accredited Mortgage Professionals
website at www.caamp.org
Visit the Independent Mortgage Brokers Association of Ontario website at
Visit the Ontario Real Estate Association website at www.orea.com
Disponible en français
Get updated on the latest news releases by subscribing to the Ministry
of Finance News Feed (http://www.fin.gov.on.ca/english/feedhelp.html)
or Email Alerts (http://www.fin.gov.on.ca/english/alerts.html).
For further information:
For further information: Gina Lee, Minister's Office, (416) 325-4694;
Scott Blodgett, Ministry of Finance, (416) 325-0324