Mortgage Brokering – News you need, volume 6

In this issue

• Welcome
• Hey mortgage professionals, change is coming that could affect you
• Taking a stand against money laundering and terrorist financing
• Building a better customer experience
• Are you doing everything you can to detect and prevent mortgage fraud?
• Dear FSRA: Clarifying disclosure to borrow
• No time to waste, file your Annual Information Return now!
• Making progress on disclosure and suitability assessment
• Check out the resources available to you
• Stay in the loop

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Mortgage professionals play a pivotal role in helping people realize their dreams, whether that’s assisting first-time home buyers get into the market or enabling individuals and families to renew their mortgage. 

What you do is incredibly important work and is challenging at the best of times, but has become even more challenging with the inflationary pressures, high interest rates and the worsening housing crisis.

At FSRA, we appreciate the fact that the vast majority of mortgage professionals are honest, hard-working people acting in the best interests of the customer. However, there are a few operators who refuse to follow the rules and jeopardize the reputation and credibility of the entire sector. 

We are doing everything in our power to protect consumers and recognize those who are truly making a positive difference in this province, while tracking down the rule breakers.

We encourage everyone to take a few minutes to read through this newsletter to better understand the progress that is being made by some brokerages to improve, learn about the various ways to detect fraud, and accept our invitation to read our guidance and attend our webinars.

Please check out these links to learn more about our licensing suitability guidance, private mortgage consumer education campaign and upcoming licensing requirements transition. 

We would also like to remind principal brokers, brokers and agents (levels 1 and 2) to complete the mandatory continuing education course by March 31. Brokers, principal brokers and level 2 agents are reminded to complete the private mortgage course by March 31. 

Get in touch

If you have feedback about our newsletter, including topic suggestions, please contact us at [email protected].

Thank you for your continued engagement and helpful feedback as we continue to further improve consumer protection and market integrity in Ontario’s mortgage brokering sector. 
 
Antoinette Leung 
Head, Financial Institutions and Mortgage Brokerage Conduct 

Effective April 1, 2024, there are new requirements when upgrading your licence. After this date, you won’t be able to use your mortgage agent experience from before April 1, 2023 to upgrade to a level 2 agent or mortgage broker licence. Submit your renewal application early and learn more about upgrading or transferring your licence.

Learn more about the new licensing requirements.

Mortgage professionals will soon be required to enhance their business practices to combat money laundering and terrorist financing. As of October 11, 2024, mortgage administrators, mortgage brokers and mortgage lenders will have obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. FINTRAC will hold information sessions and webinars.

Learn more about combatting money laundering and terrorist financing.

It’s important to learn from past mistakes, consider other points of view and adopt best practices. That’s a formula for constant improvement. Mortgage brokerages have an opportunity during the complaints resolution process to identify staff training needs and enhance policies and procedures. Follow these simple best practices to increase customer trust and satisfaction.

Learn more about building a better customer experience.

As a mortgage professional, there are steps you can take to protect your clients and your business from fraudsters. Being involved in mortgage fraud can lead to your license being revoked and possible criminal charges. Consult our final guidance on detecting and preventing mortgage fraud to ensure you’re not unwittingly facilitating fraud.

Learn more about detecting and preventing mortgage fraud

Ultimately, it is your responsibility to ensure your client receives the right information to make an informed decision about their mortgage. It is best to create your own disclosure so that your client receives clear and understandable disclosure.

Learn more about disclosure.

The clock is ticking on those who have not filed their Annual Information Return and the consequences of missing the deadline can be severe. Mortgage brokerages and administrators who fail to file by March 31 are subject to Summary Administrative Monetary Penalties and/or other enforcement action.

Learn more about filing the annual information return.

We are seeing some encouraging signs in the mortgage sector. After completing a review of eight brokerages with previously noted disclosure and suitability assessment deficiencies, we are seeing steady improvement.

Learn more about disclosure and suitability assessment

Help us help you comply. Mortgage professionals should read FSRA’s latest guidance documents and attend our webinars to learn more about their licensing obligations and better protect consumers.

Learn more about resources available to you.