TORONTO, Feb. 11, 2022 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) supports the government's proposal to increase the skills and knowledge of mortgage agents and brokers to better protect consumers and investors.
FSRA is consulting on guidance that outlines a proposed new education requirement for a new licence category for mortgage agents transacting in private mortgages as well as mortgage brokers. Private lending is more complex and less transparent than traditional lending by regulated financial institutions. The current education requirement does not differentiate between traditional and private mortgages.
The proposed new licence will help agents and brokers better serve consumers and investors in the growing private lending market by raising education standards and helping ensure they receive appropriate mortgage advice and product recommendations. It also supports the competency principle in the Mortgage Broker Regulators' Council of Canada (MBRCC) National Code of Conduct.
The guidance provides details about the transition to the proposed new licensing classes. The details correspond with the government's draft proposed amendments to Ontario Regulation 409/07 under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) currently out for consultation. If approved, the proposed new licensing classes would take effect on April 1, 2023.
To review the proposed guidance and submit your feedback, please visit FSRA's website. The consultation period is now open and will close on March 14, 2022.
FSRA and the Ministry of Finance, in consultation with the industry, are working collaboratively to implement recommendations from the 2019 report on the government's review of the MBLAA.
- Consultation on New Mortgage Agent and Broker Licensing Requirements
- Draft proposed amendments to Ontario Regulation 409/07
- FSRA publishes final guidance on enhanced education standards for the mortgage brokering sector
- FSRA releases final guidance confirming the exemption of certain businesses from holding a mortgage brokerage licence
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 further information: FOR MEDIA INQUIRIES: Russ Courtney, Senior Media Relations and Digital Officer, Financial Services Regulatory Authority, C: 437-225-8551, Email: [email protected]