elevating standards
THREE NEW LICENCE CLASSES HAVE BEEN PROPOSED
1 2 T 3 NEW ONTARIO LICENSING REQUIREMENTS: WHAT YOU NEED TO KNOW BY CHRIS FREIMOND
MORTGAGE AGENT LEVEL 1 LICENCE authorizes licensees to deal and trade in mortgages provided by: n Financial institutions, as defined in section 1 of the MBLAA. n Lenders approved by Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act (NHA).
MORTGAGE AGENT LEVEL 2 LICENCE authorizes licensees to deal and trade in mortgages provided by: n Financial institutions, as defined
he proposed new licensing provisions for mortgage brokers in Ontario are good for the industry as a whole and an important first step in elevating the standards of the profession, says Sadiq Boodoo, principal broker, president and CEO of Approved Financial Services and a board member of CMBA-Ontario. “Anything that requires more education and makes sure we are all able to better serve our clients and better protect investors is a good thing,” says Boodoo. “I think these changes will create at least a baseline standard for the industry and set a minimum level of knowledge requirements and experience for brokers so that we all operate from the same base of knowledge and experience.” The new licensing provisions are part of the Ontario government’s proposed amendments to Ontario Regulation 409/07 under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA). If approved, the new licensing categories would take effect on April 1, 2023, starting with a 12-month transition period for brokers to meet the new licensing requirements.
18
I SPRING 2022 CMBA-ACHC.CA
CMB MAGAZINE
in section 1 of the MBLAA. n Lenders approved by CMHC under the NHA. n All other lenders, such as mortgage investment companies, syndicates, private individuals, agents, brokers and brokerages.
MORTGAGE BROKER LICENCE authorizes licensees to deal and trade in mortgages provided by: n Financial institutions, as defined
in section 1 of the MBLAA. n Lenders approved by CMHC under the NHA. n All other lenders, such as mortgage investment companies, syndicates, private individuals and brokerages. MORTGAGE BROKERS CAN SUPERVISE MORTGAGE AGENTS (LEVELS 1 AND 2) AND CAN BE APPOINTED AS THE PRINCIPAL BROKER FOR A BROKERAGE.
The proposed new licensing requirements flow from a report to the Minister of Finance on the Legislative Review of the MBLAA that recommended the Ministry of Finance work with Financial Services Regulatory Authority of Ontario (FSRA), in consultation with the industry, to propose options for licensing schemes that better respond to the unique practices required by certain segments of the mortgage market. Stakeholder feedback received during the MBLAA review process indicated that licensees working with private mortgage lenders and raising capital require a specific set of competencies, which should be reflected in the licensing and education requirements. In response, the Government of Ontario proposed effective April 1, 2023: n The establishment of a separate licence for mortgage agents who transact in private mortgages and arrange investments for private investors/mortgage lenders. n Enhanced education and experience requirements for mortgage agents and brokers. Boodoo, who was is a member of the technical advisory committee that provided feedback to the FSRA on the guidelines, says the proposed licence for mortgage agents includes enhanced requirements that address the need for agents (as well as brokers) to have additional education, knowledge and experience regarding private mortgages.
ADOBESTOCK
