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Mortgage Brokering – News you need, volume 8

Welcome

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Antoinette Leung, Head, Financial Institutions and Mortgage Brokerage Conduct

Dear mortgage professionals,

When we last spoke in our previous newsletter, inflation and interest rates appeared to both be going down, despite some remaining pandemic era disruptions.

However, since then, geopolitical matters introduced significant economic uncertainty as new developments emerge on a daily basis.

This has made the outlook for Ontario's housing market highly uncertain. Moreover, it doesn’t appear that this will change in the near term.

But while the future may be unclear, one thing is certain: your regulator is here to help. Be assured that we are monitoring closely and will maintain open communication with our sectors.

In the meantime, we have a selection of articles to help you be informed and prepared as we navigate a turbulent period together.

New Continuing Education (CE)

At FSRA, we strongly believe in a collaborative relationship with the sector. We share your goal of further elevating professionalism and standards of business conduct. The new CE requirements are a key part of that.

If you've already started working on the CE, you're ahead. If not, start now. These courses matter— they address new risks, updated expectations and the realities you're facing every day.

Be sure to read all about the new requirements and catch up on our webinars if you couldn’t attend. 

Remember: every CE course taken since April 2024 counts toward your current obligations that are due on March 31, 2026.

Economic uncertainty can increase the complexity of a client’s situation, reducing mortgage affordability for them, which can increase the likelihood of future complaints.

The current situation, therefore, calls for extra due diligence when servicing your clients, especially those who are less financially resilient. Effective documentation is even more critical at this time to support sound decision making, and protect your clients and yourself.

As always, we thank you for your continued efforts in ensuring a safe, strong and vibrant mortgage brokering sector in Ontario.

Principal brokers: we need your feedback. Send us the topics and a brief description of what you want to learn about at our next Principal Broker Conference this fall: [email protected].

Antoinette Leung
Head, Financial Institutions and Mortgage Brokerage Conduct

Mortgage professionals: change is coming that will affect you

FSRA has introduced new Continuing Education (CE) requirements for all mortgage agents and brokers to help raise professionalism in the mortgage brokering industry. All agents and brokers must meet the new requirements by March 31, 2026. If you don’t, FSRA will not renew your licence.

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Being honest and operating with integrity is paramount

Unethical behavior puts your job and reputation at risk. We strongly encourage mortgage professionals to take the time to do things properly. It’s not only the right thing to do—it’s your legal duty.

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I’ve been selected for a FSRA examination—now what?

At FSRA, we continuously verify that firms and individuals remain suitable to be licensed. One of the ways we verify is by conducting examinations. Because we believe strongly in a collaborative relationship between the regulator and industry, we want to help you understand what to expect if you've been selected for an examination.

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Need to know: how to document a suitability assessment

At FSRA, we’re focused on helping you understand and meet your responsibilities. One of the most common questions we receive is around the amount of documentation required for record keeping, especially for suitability assessments.

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Keep good records to protect your reputation

As a professional, your reputation is key to protecting and growing your business. One of the best ways to do this is by maintaining effective records. Taking these steps also helps promote consumer confidence in the mortgage brokering sector which makes consumers more likely to use your services.

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Tarion new home warranty changes

Illegal building and selling is a serious problem which hurts consumers. One of the biggest challenges to protecting consumers is making sure that the regulators know about an illegal sale when it happens – not years later when there is an issue with the home. Tarion has introduced a change to the deposit protection process which will encourage new home buyers to register their purchase agreement with them shortly after they sign.

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2023 Mortgage Brokering Annual Information Return Report

Coming soon: FSRA will publish the 2023 Mortgage Brokerages and Administrators Annual Information Return Report on June 20. The Report provides a comprehensive summary on mortgage brokerages’ and administrators’ activities in Ontario for the past fiscal year.

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Attention Mortgage Administrators: don’t forget your financial filing requirements

Don’t forget that your financial filings (e.g., audited financial statements) must be submitted within 90 days of your fiscal year end.

All filings must follow the new filing requirements which became effective December 31, 2024.

For more information, review the Mortgage Administrators’ Financial Filing Requirements Guidance and the corresponding webinar materials.

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