Mortgage Broker LicenceSubprime mortgage broker license
Helping to find their home of dreams and put it into practice.
Approved for lending: the new Mortgage Broker, Lender and Administration Act, 2006.
The Mortgage Brokers Act (the "Old Act") was superseded on 1 July 2008 by the new Mortgage Brokers, Lenders and Administration Act, 2006 (the "New Act" or the "Act"). This new law extends efficiently the field of application of the regulation system and lays down new authorisation conditions for undertakings carrying out regulation work.
1 ] It is important to understand how the new law will affect you and your company before you engage in regulatory work. Are there any legal regulations governing what we do? When you or your company are involved in any transaction involving any of the above operations, you may be subject to a license under the law.
Given that the duties and sanctions associated with permits under the new Act can be very severe, it is important to establish whether you or your company or the activity you perform is exempted from the permit duties under the new Act. Exempted transaction instances would involve a transaction between a merchant and the Crown under the laws of Ontario or another county or jurisdiction of Canada, a bank or company that is a affiliate, or a company that is an authorized creditor under the National Housing Act (Canada).
10 ] Attorneys are also exempted from authorisation obligations as long as they do not impersonate traders or trade in mortgage loans and act in their profession. What license is right for you? Under the new law, non-exempted individuals or corporations must be licensed by the Superintendent for Financial Services (the "Superintendent") in one of the four classes specified in the law.
Licensee under this License must designate a single named agent to act as "Principal Broker". 13 ] This organism necessity be a accredited security interest businessperson by law and be accredited by the security interest businessperson business to commerce or commerce security interest on their message. Who can be nominated as main broker depends on the nature of the unit that the licensee is, such as a corporate body, partner or underwriter.
How does the licensing procedure work? How a licence is obtained depends on the nature of the licence to be obtained. Our services can help you meet the admission criteria for each license, complete the full registration form and submit the appropriate fees. How does the new law apply to vendor take-back mortgage ("VTB's")?
Regulation 407/07 provides for a restricted exception from the authorisation requirements for brokering VTB's in the context of property trading for agents, broker or sellers listed with the Royal Property Council of Ontario ("RECO"). 17 ] Registred agents and sellers may negotiate VTBs as long as they do not impersonate a mortgage trader and do not perform any other licensable activity.
An individual considering a VTB as part of a property deal has several ways of ensuring that he or she complies with the law. However, the Financial Services Commission of Ontario has announced that the license provisions of the Act do not govern VTBs in sales and purchases contracts concluded before July 1, 2008 and after July 1, 2008.
Which are the current legal duties of a licensee? Under the new law, as stated on the website of the Financial Services Commission of Ontario, as of January 1, 2009, mandatory reports and disclosures will be expanded to meet the needs of all companies and individuals under license. Ontario's Financial Services Commission may impose administration fines on any person or entity that does not abide by the new law.
Penalties, regulative actions such as adherence orders or license acquisition, judicially ordered refunds or compensations may be levied.