Better Protecting Consumers with New Requirements for the Mortgage Brokering Sector
TORONTO, April 21, 2022 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is supporting the government's direction to introduce a new licence class for mortgage agents in Ontario and to enhance education and experience requirements for the mortgage brokering sector.
"The new requirements will better protect consumers and investors by helping ensure they receive appropriate mortgage advice and product recommendations when dealing with private mortgages," said Huston Loke, Executive Vice President, Market Conduct at FSRA.
FSRA is releasing final Interpretation and Approach guidance outlining the new licensing classes:
- Level 1 - agents may arrange mortgages solely with financial institution type lenders as described in regulation
- Level 2 - agents may arrange mortgages for all mortgage lenders, including private individuals.
The guidance also introduces enhanced education for all brokers and for any agent who wants to hold a Level 2 agent licence. These new licensing classes come into effect on April 1, 2023.
As a result of public consultations, FSRA amended the guidance to address stakeholder feedback, including:
- Changing the launch of the new course and the Challenge Exam from fall 2022 to early 2023
- Brokers and agents must pass the challenge exam by October 2023, rather than March 2024. This will provide them with additional time, until March 31, 2024, to take the Private Mortgage Course if they do not pass the exam.
As part of the transition period, FSRA will renew licences based on the new classes in the 2023 renewal cycle:
- Agents with less than one year of experience will receive a Level 1 agent licence
- Agents with more than one year of experience will decide with their brokerage whether they receive an agent level 1 or level 2 licence
- All brokers will receive a new broker licence.
Mortgage agents and brokers who wish to maintain a Level 2 agent or mortgage broker licence in the 2024 renewal cycle must do the following:
- Complete the Private Mortgages Course by March 31, 2024; or
- Pass a Private Mortgages Course Challenge Exam by October 31, 2023. This exam is only for agents and brokers who have five years of continuous licensing experience.
The Private Mortgages Course and Challenge Exam will be available in early 2023. Agents and brokers who don't complete the new education requirements by the deadline will be issued a Level 1 agent licence.
Learn more:
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
SOURCE Financial Services Regulatory Authority of Ontario
FOR MEDIA INQUIRIES: Russ Courtney, Senior Media Relations and Digital Officer, Financial Services Regulatory Authority, C: 437-225-8551, Email: [email protected]
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