Mortgage administrator Annual Information Return for 2022

Mortgage Brokerages, Lenders and Administrators Act, 2006

General information

The information listed on this page represents information on file with FSRA as of December 31, 2022:

Legal Name of Administrator:
Other Authorized Name:
Contact Person:
Administrator Licence Number:
Business Type:
Contact Name:

Does the administrator have a CRA business number?  ▢ Yes     ▢ No
(If yes) CRA business number for the administrator (9 digit):

If No, provide an explanation why the administrator does not have a CRA Business Number:

Principal place of business address
Street Address:
Apt. / Unit:
City:
Province:
Postal code:

Mailing Address (Check if same as above) ▢
Street Address:
Apt. / Unit:
City:
Province:
Postal code:

Phone Number:
Fax Number:
Principal Representative E-mail address:

Consumer complaints E-mail address*:

*Please indicate the email address to which consumers should direct complaints and/or general inquiries. This email address may be posted on the public register and may be provided to the public for the purpose of contacting the administrator.

NOTE: If any of the above information has changed, you are required to notify the Financial Services Regulatory Authority of Ontario (FSRA) within 5 business days of the change by email at: [email protected]

Welcome to the 2022 Annual Information Return (AIR). The Financial Services Regulatory Authority of Ontario (FSRA) uses the information you provide in the AIR to help identify, assess and monitor risk in the mortgage brokering sector. The deadline to file the AIR is by March 31, 2023. The reporting period is January 1 to December 31, 2022; you must file even if you did not conduct any business during the reporting period.

Before you proceed

Only the Principal Representative of the licensed mortgage administrator can complete and submit the AIR. If you fail to file the AIR on time, FSRA may take steps to suspend or revoke your mortgage administrator licence. You may also be subject to an administrative monetary penalty. Any missed deadline will result in a warning letter on your file, which may increase the level of future enforcement action taken by FSRA.

Please note that any inquiries made to FSRA regarding the AIR must be made directly by the Principal Representative.

What you need to complete the AIR

• Internet requirements: secure high-speed internet connection; JavaScript, cookies, pop-ups. Recommended browsers - Chrome, FireFox and MS Edge. Internet Explorer is not supported.
• administrator licence number
• errors and omissions insurance provider, policy number and expiry date
• total number and location of offices in Canada
• dollar value of mortgages administered in Canada, by region
• download and review the Questionnaire in advance to determine what additional information you may need

Completing the AIR

• data is automatically saved when you enter data into the AIR and navigate to a new question
• all questions must be answered as applicable
• questions can be answered in any order
• use the “Tab” key and/or mouse to navigate through items on each page
• use the links in the menu on the left to navigate to different parts of the AIR
• you are able to print a copy of the AIR at anytime by clicking on the printer icon in the upper righthand corner of the page
• pages that are incomplete or that have errors will be identified with an Asterix (*) in the navigation menu on the left
• to file the AIR with FSRA, click “Submit” on the Attestation page

Refer to the AIR Frequently Asked Questions for additional tips. You may also click on the camera icon located in the upper right corner of the screen to submit a question regarding any technical difficulties with the AIR.

Note: Consistent with FSRA’s role in deterring deceptive or fraudulent conduct, practices and activities by the regulated sectors pursuant to s. 3(1)(g) of the Financial Services Regulatory Authority of Ontario Act, 2016, FSRA collaborates with other organizations, including fraud prevention organizations and law enforcement agencies, to help combat unlawful activity. Please be advised that the information you provide in the AIR may be shared with such organizations.

On average, entering information for the AIR online will require approximately 60 minutes to several hours to complete. Should you require additional time, you may return at a later time and date to complete the AIR.

If you have finished reading and understand the instructions, please proceed to the next page to begin.

Reporting changes

It is required to notify the Financial Services Regulatory Authority of Ontario (FSRA) within 5 business days of a change to the general information of an administrator by email at: [email protected].

Did any of the following information change during the reporting period, and did you report the changes to FSRA by email at [email protected]: (Check all that apply)

Administrator information	Changed? (Yes/No)	Reported? (Yes/No)
Address for Service	▢     ▢	▢     ▢
Address of Principal Place of Business	▢     ▢	▢     ▢
Email, Phone or Fax	▢     ▢	▢     ▢
Officers or Directors	▢     ▢	▢     ▢
Partners in Partnership	▢     ▢	▢     ▢
E&O Insurance	▢     ▢	▢     ▢
Open/Closed Offices	▢     ▢	▢     ▢

If No, to reporting any changes above, explain why the change was not reported.

Administrator information

a. E&O Insurance Provider

(i) Indicate the liability limits under your current E&O Policy.

b. Did your Errors & Omissions insurance policy lapse at any point during the reporting period?

If Yes, explain:

c. On August 18, 2022 FSRA and the Mortgage Broker Regulators’ Council of Canada (MBRCC) released guidance on cybersecurity preparedness. Does the administrator have in place or is the administrator working towards achieving cybersecurity preparedness as described in the guidance?

d. The revised MBRCC guidance clarifies that businesses should identify cybersecurity preparedness practices appropriate for their size, operations and IT capabilities. Does the administrator have insurance for cybersecurity liability?

e. During the reporting period, did the administrator experience any cyber security incident which resulted in a breach of the administrator’s computer systems/networks?

f. FSRA’s cybersecurity guidance indicates that brokerages and administrators should notify FSRA if they experience a cybersecurity incident that could have a material impact on client information. When FSRA becomes aware of a cybersecurity incident through notification by a licensee, market intelligence, a tip or complaint, it will activate FSRA’s Market Conduct Protocol for Cybersecurity as described in the guidance.

During the reporting period did you experience a cybersecurity incident that did not have a material impact on client information and therefore did not require notification to FSRA?

g. Does the administrator have cyber security Policies and Procedures in place?

h. What is the administrator’s designated fiscal year end?

i. Is the mortgage administrator’s auditor a licensed public accountant?

NOTE: Audited financial statements are required to be prepared by a licensed public accountant listed on CPA’s public registry in good standing.

j. Did the administrator file financial information pursuant to O. Reg. 193/08 s. 3?

k. Did your annually filed audited financial statements include the Independent Auditor's Reasonable Assurance Report on Compliance as required under s.3(1)(c) of Ontario Regulation 193/08 and as indicated in the current FSRA Guidance

l. If the administrator or its related persons/entities are also licensed as a mortgage brokerage with FSRA, enter the mortgage brokerage licence number here:

m. Does the administrator have a mortgage brokerage licence in another jurisdiction/province?

n. What other lines of business was the administrator engaged in?

o. Is the administrator a publicly traded company?

p. Is the administrator registered with Financial Transactions and Reports Analysis Centre (FINTRAC)?

NOTE: This question is for information gathering purposes only. Registration with FINTRAC is not a mandated requirement.

Trust account information

The purpose of these questions is to verify compliance with legal obligations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA).

1. Did the administrator have a trust account(s) under the MBLAA?

2. Was there a shortfall, at any time during the reporting period, in any of the MBLAA trust accounts?

Supervision of operations

The purpose of these questions is to determine whether the administrator’s operations are organized in a way that facilitates supervision and to facilitate examination/inspection planning by FSRA.

3. Indicate the total number of owners of the administrator, including those who are Directors, Officers, Partners and Beneficial Owners as at December 31, 2022.

4. Provide the total number of offices for each Ontario region as at December 31, 2022 as applicable:

5. Does the administrator have an individual designated to ensuring compliance with the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA)?

Portfolio details / information

(The purpose of these questions is to gather marketplace statistics)

Where mortgage specific, such as number or dollar value of mortgages, please provide the information as of December 31, 2022.

6. Provide the following information on the administrator’s mortgage portfolio as at December 31, 2022:

7. Provide the following information regarding the underlying properties for the mortgages under administration as at December 31, 2022:

8. Provide the demographic of the investors in the mortgages under administration as at December 31, 2022:

9. Is the mortgage administrator related to borrowers on mortgages they have under administration?

10. Did the administrator manage a Mortgage Investment Corporation (MIC) during the reporting period?

11. List the top three (3) MICs the administrator administered based on the total dollar value of mortgages.

12. List the top three (3) MICs the administrator administered based on the total number of mortgages.

13. Did the Administrator's Policies and Procedures include provisions specifically covering procedures relating to MIEs (including MICs)?

14. Provide a list of all MICs that were managed by the administrator during the reporting period that sold units/shares/etc. to investors through a prospectus or Offering Memorandum filed with a securities commission?

15. Did the administrator administer any private mortgages other than for a MIC excluding SMIs?

16. Does the administrator have in place policies and procedures which relate to the disbursement of funds for all types of mortgage products under its administration?

17. Please provide the total number of instances of redemption or early repayment freezes, that the mortgage administrator put in place during the reporting period.

18. Did the administrator administer any non-qualified syndicated mortgages investments (NQSMI)?

19. Does the Administrator's Policies and Procedures include provisions governing NQSMIs?

20. Did the administrator administer any qualified syndicated mortgages investments (QSMI)?

21. Does the Administrator's Policies and Procedures include provisions governing QSMIs?

Records information

22. What format were your required records stored in? (check all that apply)

Unimpaired working capital

23. Have you maintained $25,000 of unimpaired working capital or other form of financial guarantee as approved by the FSRA Chief Executive Office at all times throughout the year?

A mortgage administrator shall maintain a financial guarantee in an amount equal to $25,000. O. Reg. 189/08, s. 28 (1)

The financial guarantee may be unimpaired working capital or it may be another form of financial guarantee acceptable to the Chief Executive Officer. O. Reg. 189/08, s. 28 (2)

Confirm that you have complied with these requirements.

Complaints and complaint handling

24. You are required to designate one or more individuals to receive and attempt to resolve complaints from the public, and each designated individual must be an employee of the mortgage administrator or someone who is otherwise authorized to act on its behalf. O. Reg. 189/08, s. 26 (2).

25. Total number of written complaints received by the administrator during the reporting period:

Suitability

The purpose of these questions is to help further determine if the mortgage administrator is suitable to continue to be licensed

26. Were there any E&O claims made against the administrator during the reporting period in any Canadian jurisdiction, during the reporting period?

27. During the reporting period, was a complaint made against the administrator to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, in allegations of fraud, theft, deceit, misrepresentation, forgery, or similar conduct?

28. During the reporting period, was the administrator or any of its Directors, Officers or Partners fined or were any monetary penalties imposed by any Canadian financial services regulator excluding FSRA?

29. During the reporting period, did the administrator or any of its Directors, Officers or Partners file for bankruptcy or have any overdue fines/monetary penalties owing to any Canadian financial services regulator excluding FSRA?

30. During the reporting period, was the administrator or any of its Directors, Officers or Partners subject to any charges laid under the laws of any Canadian province/territory?

31. During the reporting period, was the administrator or any of its Directors, Officers or Partners fined or otherwise sanctioned by any Provincial/Federal courts?

32. During the reporting period, were any licences the administrator or any of its Directors, Officers or Partners held from a regulatory body/professional organization revoked or suspended?

33. Did the administrator or any of its Directors, Officers or Partners conduct any other business from the business’ premises?

34. During the reporting period, was the administrator or any of its Directors, Officers or Partners named in a lawsuit (Statement of Claim, Counterclaim or Third-party Claim) If yes, provide a brief explanation:

Closing questions

This question is for statistical purposes

How long did it take to gather the information and complete the AIR?

Hours:                               Minutes:

Payment of annual regulatory fee

FSRA has integrated the payment of the Mortgage Administrator's Annual Regulatory Fee with the filing of the 2022 AIR

In order to retain the Mortgage Administrator's licence, the Annual Regulatory Fee of $841 must be paid.

The annual regulatory fee

• supports the cost of FSRA as an independent regulator, and its priority to transform existing regulatory processes through a new organizational design, with enhanced capacity and staff expertise
• the fee has been determined based on FSRA Rule 2019-001 Assessments and Fees
• on or before the day on which a fiscal year ends, a corporation, partnership, sole proprietorship, or other entity that has a mortgage administrator’s licence shall pay a regulatory fee in respect of the next fiscal year of $841
• payment of the fee is due to FSRA no later than March 31, 2023

To learn more about the fees for the Mortgage sector, please visit: Financial Services Regulatory Authority of Ontario Rule 2019-001 Assessments and Fees and refer to Subsection 6.2.

For more information, please refer to the question and answer page. You can also contact FSRA by emailing [email protected] or calling 1-800-668-0128.

Attestation

CERTIFY THAT:
I am aware that it is an offence to make a false statement to the FSRA Chief Executive Officer under the Mortgage Brokerages, Lenders and Administrators Act, 2006, and that the information provided in this Annual Information Return is true to the best of my knowledge and belief.

 

NOTE: This Annual Information Return can only be completed by a sole proprietor, a general partner of a partnership or an officer of a corporation.