Mortgage Brokerages, Lenders and Administrators Act, 2006
AIR guide
Welcome to the 2023 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, 2024. The reporting period is January 1 to December 31, 2023; you must file even if you did not conduct any business during the reporting period.
Before you proceed
Only the Principal Broker of the licensed mortgage brokerage 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 brokerage 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 Broker.
If you are a franchisor, do not report for your franchisees.
What you need to complete the AIR
- Internet requirements: Secure high-speed internet connection; JavaScript, cookies, pop-ups. Recommended browsers - Google Chrome, Mozilla FireFox and Microsoft Edge. Internet Explorer is not supported.
- brokerage licence number
- errors and omissions insurance policy number and expiry date
- total number and location of offices in Canada
- dollar value of mortgages brokered 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 entered into the AIR and when navigating 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 right-hand 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 of 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.
General information
The information listed on this page represents information on file with FSRA as of December 31, 2023:
Legal Name of Brokerage:
Other Authorized Name:
Brokerage Licence Number:
Business Type:
Principal Broker:
Broker Licence Number:
Does the brokerage have a CRA business number? ▢ Yes ▢ No
(If yes) CRA business number for the brokerage (9 digit):
If No, provide an explanation why the brokerage 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 Broker E-mail address:
Additional E-mail address FSRA can send information to:
*FSRA expects these email addresses to be regularly monitored.
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 brokerage.
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]
THE ANNUAL INFORMATION RETURN AND ALL OF ITS QUESTIONS PERTAIN TO THE PERIOD COVERING JANUARY 1 TO DECEMBER 31, 2023. UNLESS OTHERWISE STATED THE RETURN IS DUE NO LATER THAN MARCH 31, 2024.
REMINDER: The brokerage must file if it was licensed anytime between January 1, 2023 and December 31, 2023 whether or not it conducted business.
If you are a Franchisor, do not report for your Franchisees.
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 a brokerage 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)
Brokerage 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.
Brokerage information
a. E&O Insurance Provider
▢ AIG Insurance Company of Canada
▢ CUMIS General Insurance Company
▢ Intact Insurance Company (Western Division)
▢ International Insurance Company of Hannover Ltd. (A.M.Fredericks Underwriting Management Ltd.
▢ Lloyd’s Underwriters through RDA Inc.
▢ Lloyd’s Underwriters through Holman Insurance Brokers Ltd.
▢ Lloyd’s Underwriters through Special Risk Insurance Managers Ltd.
▢ Lloyd’s Underwriters through Evolution Insurance Inc.
▢ Lloyd’s Underwriters per Catalin Canada Inc.
▢ Lloyd’s Underwriters as arranged by Trinity Underwriting Managers ▢ Lloyd's Underwriters through Newline Canada Insurance Limited
▢ Royal & Sun Alliance Insurance Company of Canada
▢ Sovereign General Insurance Company
▢ Sovereign General Insurance through Premier Canada Assurance Managers Ltd.
▢ Victor Insurance Managers Inc. (formerly Encon Group Inc.)
▢ XL Specialty Insurance Company – Canadian Branch
▢ Zurich Insurance Company Limited
▢ Other
If Other, name of E&O insurance provider:
(i) Indicate the liability limits under your current E&O Policy.
Per Occurrence
▢ $500,000
▢ $1,000,000
▢ Other – Specify Amount:
Per Annual Aggregate
▢ $500,000
▢ $1,000,000
▢ Other – Specify Amount:
b. Policy Number:
c. Expiry Date:
d. Upload a copy of the brokerage’s Errors & Omissions Insurance Certificate:
Note: Proof of Insurance should include Policy Number, Coverage Amount, Name of Insured, Insurer Name and Fraudulent Acts coverage.
e. Is your Errors & Omissions insurance policy in force?
▢ Yes
▢ No
If No, explain:
f. Did your Errors & Omissions insurance policy lapse or was cancelled at any point during the reporting period?
▢ Yes
▢ No
If Yes, explain:
g. Is your brokerage a franchise or part of a network?
▢ Yes
▢ No
If Yes, name of the franchisor or network:
h. If the brokerage or its related persons/entities* is also licensed as a mortgage administrator with FSRA, enter the administrator licence number here:
“Related persons/entities“ includes affiliates, officers, directors, partners, employees, brokers, agents, principal shareholders, etc. of the brokerage.
i. Is the brokerage’s primary line of business mortgage brokering?
▢ Yes
▢ No
j. What other lines of business was the brokerage engaged in?
▢ Mortgage Lending
▢ Accounting
▢ Legal Services
▢ Advisory Services/Consulting
▢ Administering Mortgages
▢ Real Estate Brokering
▢ Construction
▢ Other:
k. Is the brokerage or its related persons/entities* a member of The Canadian Investment Regulatory Organization (CIRO)?
▢ Yes
▢ No
If Yes, provide the MFDA membership number of the brokerage or its related persons/entities* and the authorized name of the firm:
l. Is the brokerage or its related persons/entities* registered as an insurance brokerage under insurance legislation in any Canadian jurisdiction?
▢ Yes
▢ No
If Yes, provide the following information:
Registration number of the brokerage or its related persons/entities* | Authorized name of the firm | Category of registration |
---|---|---|
m. Is the brokerage or its related persons/entities* registered as a dealer or adviser under securities regulation in any Canadian jurisdiction?
▢ Yes
▢ No
If Yes, provide the following information:
Registration number of the brokerage or its related persons/entities* | Authorized name of the firm | Category of registration |
---|---|---|
n. Is the brokerage or its related persons/entities* registered as a real estate brokerage in any Canadian jurisdiction?
▢ Yes
▢ No
If Yes, provide the following information:
Registration number of the brokerage or its related persons/entities* | Authorized name of the firm | Category of registration |
---|---|---|
o. Does the brokerage or its related persons/entities* hold any other licences including mortgage brokerage or mortgage administrator licences in any Canadian jurisdiction (Ex. Financial Planner, Financial Advisor)?
▢ Yes
▢ No
If Yes, provide the following information:
Type of Licence | License Number | Canadian Jurisdiction in which Licence is held |
---|---|---|
“Related persons/entities“ includes family members, affiliates, officers, directors, partners, employees, brokers, agents, principal shareholders, etc. of the brokerage.
p. Is the brokerage a publicly traded company?
▢ Yes
▢ No
If yes, what is the brokerage’s trading symbol?
q. If no, is the brokerage related to a publicly traded company?
▢ Yes
▢ No
If yes:
i. What is the name of the publicly traded company the brokerage is related to?
ii. What is the trading symbol of the publicly traded company the brokerage is related to?
iii. What is the relationship between the brokerage and the publicly traded company?
▢ Parent of the brokerage
▢ Subsidiary of the brokerage
▢ Commonly controlled
▢ Other affiliations
r. Is the brokerage registered as a reporting entity with the Financial Transactions and Reports Analysis Centre (FINTRAC)?
▢ Yes
▢ No
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 brokerage have a trust account(s), in Ontario or outside, during the reporting period?
▢ Yes
▢ No
If Yes:
1a. How many trust accounts did the brokerage have as of December 31, 2023?
How many are within Ontario?
How many outside Ontario?
1b. Of the total number, how many trust accounts were opened during the reporting period?
1b-i. How many of these trust accounts were opened on Ontario?”
1b-ii. For the trust accounts opened in Ontario, did the brokerage obtain prior written consent from the FSRA Chief Executive Officer if more than one trust account was opened, pursuant to O. Reg. 188/08, s. 50 (2)?
▢ Yes
▢ No
1b-iii. If No, explain why?
1c. Did the brokerage reconcile all of its trust accounts?
▢ Yes
▢ No
1c-i. If Yes, how often did the brokerage reconcile the trust accounts?
▢ Monthly
▢ Annually
▢ Quarterly
1c-ii. If No, explain why?
2. Was there a shortfall, at any time, in any of the trust accounts?
▢ Yes
▢ No
If Yes, provide the following information:
Date shortfall occurred | Amount of shortfall | Has shortfall been corrected | Date shortfall corrected | Reported to the FSRA CEO | Reason for shortfall and steps taken to correct |
---|---|---|---|---|---|
$_______.00 | ▢ Yes ▢ No | ▢ Yes ▢ No | |||
$_______.00 | ▢ Yes ▢ No | ▢ Yes ▢ No | |||
$_______.00 | ▢ Yes ▢ No | ▢ Yes ▢ No | |||
$_______.00 | ▢ Yes ▢ No | ▢ Yes ▢ No |
Supervision of operations
The purpose of these questions is to determine whether the brokerage’s operations are organized in a way that facilitates supervision and to facilitate examination/inspection preparation by the brokerage and planning by FSRA.
3. Indicate the total number of Beneficial Owners of the brokerage, including those who are also Directors, Officers, Partners as at December 31, 2023.
▢ Select 1 to 10
▢ 10+
▢ Publicly traded company
List any owners of the brokerage, other than the Directors Officers or Partners as at December 31, 2023; where an owner is a corporation, please include the ultimate individual Beneficial Owners and add in brackets the name of the corporation.
If more than five, list the top five owners, based on the greatest percentage of ownership, and upload a list of ALL owners with their respective percentage of ownership:
If the brokerage is a publicly traded company, insert “Shareholders” in the “Owner’s legal name” column.
Owner’s legal name | Percentage owned |
---|---|
3a. Where was the brokerage’s head office/headquarters in Canada as at December 31, 2023?
[Dropdown list – Provinces]
NOTE: For the purpose of the AIR, "head office" is defined as: "A place of business where a broker or agent spends more than 50% of his or her time working on mortgage brokering, including home offices."
4. Provide the following information about the brokerage’s offices for each Ontario region as at December 31, 2023 as applicable:
Ontario region | Number of offices | Number of Offices with a Broker** |
---|---|---|
Toronto (M) | ||
Central Ontario (Excluding Toronto) (L) | ||
Eastern Ontario (K) | ||
Northern Ontario (P) | ||
Southwestern Ontario (N) | ||
Total # of Offices |
** Licensed broker assigned to office in a supervisory capacity
5. How many offices did the brokerage have in Canada, outside of Ontario, as at December 31, 2023?
NOTE: For the purposes of the AIR, “offices” is defined as: “A place of business where a broker or agent spends more than 50% of his or her time working on mortgage brokering, excluding home offices that are not open to the public.”
6. Select all applicable steps taken (as described in your Policies and Procedures) by the brokerage during the reporting period to provide adequate supervision for all offices in Ontario where business was transacted.
▢ Onsite Supervisor/Manager
▢ Remote Supervision (e.g., Zoom, MS Teams, Online systems)
▢ File Review/File Audits
▢ Regular Meetings (monthly, quarterly etc.)
▢ Policies and Procedures/Best Practices
▢ Remote Training/Support (phone/email/fax/online)
▢ In-person Training/Support
▢ Individual Performance Reviews of Agents/Brokers
▢ Other
6a. If Other is selected, explain:
6b. If Remote Supervision is selected, describe steps taken to facilitate remote supervision?
7. Provide the following information about the number of brokers and agents licensed by the brokerage in Ontario as at December 31, 2023:
Number of full-time brokers (7a.) | Number of part-time brokers (7b.) | Number of full-time agents (7c.) | Number of part-time agents (7d.) | Number of other staff (unlicensed) (7e.) | Total |
---|---|---|---|---|---|
For full-time/part-time brokers or agents, include any individual authorized by the brokerage (e.g., licensed assistants, in-house underwriters, etc.). Include agents/brokers licensed in Ontario, the agent/broker does not have to reside in Ontario.
For the purposes of the AIR, an individual whose primary occupation is working as Mortgage Broker or Agent is considered full-time
7f. Provide the percentage of your licensed staff who do not originate deals and only complete admin or back-office tasks the reporting period:
Drop Down List Options:
▢ Under 25%
▢ 26-50%
▢ 51-75%
▢ 76-100%
7f-i. Provide the percentage of your licensed staff (agents/brokers) that is required to originate deals and that have not closed any deals during the reporting period:
Drop Down List Options:
▢ Under 25%
▢ 26-50%
▢ 51-75%
▢ 76-100%
7g.
7g-i. Joined the brokerage in the reporting period? | 7g-ii. Resigned from the brokerage in the reporting period? | |
---|---|---|
Number of brokers/agents |
7h. How many brokers/agents were terminated for cause by the brokerage in the reporting period?
If brokers/agents were terminated for cause, explain:
Name of Broker/Agent Terminated for Cause | Date of Termination for Cause | Reason for Termination |
---|---|---|
7h-i. Did you report the matter to FSRA through Licensing Link?
▢ Yes
▢ No
7i. Have you immediately notified FSRA’s Chief Executive Officer if you believe that there may be reasonable grounds for the Chief Executive Officer to determine that a broker or agent is not suitable to be licensed under the MBLAA?
A brokerage shall immediately notify FSRA’s Chief Executive Officer if the brokerage believes that there may be reasonable grounds for the Chief Executive Officer to determine that a broker or agent is not suitable to be licensed under the MBLAA (O. Reg. 188/08 s. 43(3))
Confirm that you have complied with this requirement if it was relevant to you.
▢ Yes
▢ No
7i-i. If No, explain:
8. Have you reviewed the brokerage’s Policies and Procedures?
A brokerage is required to review the brokerage’s Policies and Procedures. (O. Reg. 410/07 s. 3(1))
Confirm that you have complied with this requirement.
▢ Yes
▢ No
8a. If, yes When were the brokerage’s Policies and Procedures last reviewed?
8b. If No, explain:
8c. When were the brokerage’s Policies and Procedures last updated?
9. When an agent/broker or the brokerage is lending their own funds, does the brokerage have enhanced suitability assessments, supervisory controls including management of conflicts of interest, and disclosure requirements in its Policies and Procedures?
▢ Yes
▢ No
If Yes, explain what enhancements are included:
If No, explain (e.g.: agents/brokers not allowed to lend own funds):
10. On August 18, 2022 FSRA and the Mortgage Broker Regulators’ Council of Canada (MBRCC) released guidance on cybersecurity preparedness. Does the brokerage have in place or is the brokerage working towards achieving cybersecurity preparedness as described in the guidance?
▢ The brokerage has cybersecurity preparedness practices in place
▢ The brokerage is currently taking action to ensure cybersecurity preparedness practices are in place
▢ No action to date on cybersecurity preparedness
If no action has been taken, please explain:
10a. The revised MBRCC guidance clarifies that businesses should identify cybersecurity preparedness practices appropriate for their size, operations and IT capabilities. Does the brokerage have insurance for cybersecurity liability?
▢ Yes
▢ No
11. How many clients does the brokerage have in its database?
For the purposes of the AIR, a “client” refers to anyone from whom the brokerage has collected and retained personal information in its database.
▢ No clients in brokerage database
▢ 1-249
▢ 250-499
▢ 500-749
▢ 750-999
▢ 1000+
12. 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 had a material impact on client information?
▢ Yes
▢ No
If Yes, please describe
If No, please advise if you experienced a cybersecurity incident that did not have a material impact on client information.
13. Approximately how many of the brokerage’s mortgage transactions were completed fully remotely (video or phone calls), in which the client (including borrowers and lenders/investors) was never met in person?
▢ Never
▢ 1% - 25%
▢ 26% - 50%
▢ 51% - 75%
▢ 76% - 90%
▢ 91% - 100%
14. For each of the activities noted below, please check whether the brokerage (as directed by the owner(s) or Principal Broker) currently deploy technology to “automate” and/ or deploy “artificial intelligence, e.g., machine learning”.
Definitions:
- “Automation” means using pre-programmed algorithms that follow specified rules to complete specific tasks
- “Artificial intelligence (AI)” refers to the application of computational tools that do not require pre-programmed rules to build models from examples, data, and experience.
Please select “Yes” “No,” or “N/A.” (“N/A” is to be used for any activities that you do not perform.)
Business Processes | Automation | Artificial Intelligence |
---|---|---|
a. Advertising and lead generation | Yes No N/A |
Yes No N/A |
b. Know your client (including ID verification) | Yes No N/A |
Yes No N/A |
c. Identify product options | Yes No N/A |
Yes No N/A |
d. Assess options and suitability | Yes No N/A |
Yes No N/A |
e. Generate recommendation(s) with rationale | Yes No N/A |
Yes No N/A |
f. Generate and deliver commitment letter | Yes No N/A |
Yes No N/A |
g. Ensuring fulfillment of conditions precedent funding | Yes No N/A |
Yes No N/A |
h. Generate and issue funding commitment | Yes No N/A |
Yes No N/A |
i. Mortgage closing | Yes No N/A |
Yes No N/A |
j. Mortgage discharge | Yes No N/A |
Yes No N/A |
k. Corporate functions (e.g., strategic planning, human capital planning, information technology, financial management) | Yes No N/A |
Yes No N/A |
l. Other | Yes No N/A |
Yes No N/A |
- If you deploy automation or artificial intelligence in other activities in operating your business, please specify.
*** Where "Yes" is selected for AI in a specific activity, the following follow-up question will appear.
15. Please indicate how you use artificial intelligence in the selected activity by selecting ALL types of AI that apply using the following definitions:
"Critical Thinking" = reasoning, comparing and querying documents
"Planning" = decision support, forecasting, predictions
"Generative" = ideation, copywriting, drafting documents, images
"Hearing" = contact centre support, handling client queries, sentiment analysis
"Touch" = exploring physical surroundings
"Speech" = chatbots, natural language conversations
"Visualizations" = read and understand documents, including images, texts and tables
AI Types | ||||||||
---|---|---|---|---|---|---|---|---|
Critical Thinking | Planning | Generative | Hearing | Touch | Speech | Visualization | Other | |
Selected Activity | ◯ | ◯ | ◯ | ◯ | ◯ | ◯ | ◯ | ◯ |
16. Please identify the major types of risks associated with the use of artificial intelligence in your business. Indicate your level of confidence in effectively mitigating each risk (high, medium, low levels of confidence).
Risks | Yes, applies to my business | Confidence Level in Mitigating the risk | ||
---|---|---|---|---|
High | Medium | Low | ||
a. Reputational harm to your business | ◯ | ◯ | ◯ | ◯ |
b. Real or perceived lack of transparency or explain-ability | ◯ | ◯ | ◯ | ◯ |
c. Inability to provide audit trail | ◯ | ◯ | ◯ | ◯ |
d. Inaccuracies, errors, or hallucinated responses | ◯ | ◯ | ◯ | ◯ |
e. Cybersecurity exposure and increased security risks | ◯ | ◯ | ◯ | ◯ |
f. Uncontrolled job displacements | ◯ | ◯ | ◯ | ◯ |
g. Real or perceived loss of human control over outcomes | ◯ | ◯ | ◯ | ◯ |
17. Does your brokerage plan to deploy artificial intelligence within the next 2 years in any of your business activities?
▢ Yes
▢ No
Records information
The purpose of these questions is to facilitate examination/inspection/planning.
18. What format were your required records stored in? (check all that apply)
▢ Electronic
▢ Paper
Note: Reference FSRA cybersecurity guidance and MBRCC Principles for Cybersecurity Preparedness if storing records in electronic format.
18a. Has the brokerage taken adequate precautions to ensure the security of your records?
▢ Yes
▢ No
If Yes, please select from the list what precautions you have taken:
Electronic Records | Paper Records |
---|---|
▢ Access to data restricted to those who require access ▢ Stored on cloud with password controls ▢ Stored on local server ▢ VPN server ▢ Data backed up daily ▢ Up-to-date anti-virus application installed ▢ All client info sent via secured channel (e.g., DocuSign) ▢ Battery backup for local system ▢ Other (provide details) |
▢ Access to data restricted to those who require access ▢ Stored in locked area (e.g., locked filing cabinets) ▢ Security alarm on office premises ▢ Other (provide details) |
If No, explain:
18a-i. Were the required records retained at the brokerage’s principal place of business in Ontario?
▢ Yes
▢ No
If No, you are required to notify FSRA’s Chief Executive Officer if records were kept at a different location. (O. Reg. 193/08, s.5)
Confirm you have complied with this requirement.
▢ Yes
▢ No
18a-ii. If No, explain:
Portfolio details / information
(The purpose of these questions is to gather marketplace statistics)
Where mortgage specifics, such as number or dollar value of mortgages are requested, please provide Ontario mortgage business information as of December 31, 2023, unless stated otherwise.
NOTES:
- When entering in dollar amounts, round to the nearest dollar. Enter whole numbers for all amounts. Dollar sign ($), comma (,) and decimal point (.) are not accepted.
- FSRA considers an Ontario mortgage to be a mortgage where any of the borrower(s), any of the lender(s) or the mortgaged property is in Ontario.
19. Did the brokerage carry out the business of dealing in mortgages as defined by the MBLAA (please review definition before responding) during the reporting period?
▢ Yes
▢ No
19a. If the brokerage carried out the activity of dealing in mortgages as defined by the MBLAA did the brokerage close any mortgage deals during the reporting period?
▢ Yes
▢ No
19a-i. If yes, did your brokerage deal or trade in mortgages during the reporting period?
▢ Yes
▢ No
If Yes, provide the total number (#) and total dollar value ($) of mortgages brokered and closed by the brokerage in Ontario:
Total number of mortgages:
Total dollar value of mortgages:
19a-ii. If yes, did your brokerage deal or trade in mortgages in other Canadian provinces/territories during the reporting period?
▢ Yes
▢ No
If Yes, provide the total number (#) and dollar value ($) of mortgages brokered and closed by the brokerage outside of Ontario:
Total number of mortgages:
Total dollar value of mortgages:
20. Did the mortgage brokerage broker mortgages for borrowers or lenders that fall within Shared Equity Mortgage Programs (SEM)?
▢ Yes
▢ No
Shared Equity Mortgage Programs (SEM): is an arrangement under which a lender and a borrower share ownership of a property. Please refer to Shared Equity homeownership webpage for more information.
21. Did the mortgage brokerage broker any crypto-backed mortgages in the reporting period?
▢ Yes
▢ No
22. Provide the # and $ value for the following types of mortgages brokered and closed by the brokerage during the reporting period:
Mortgage Type (Categories for each “total” sections are not mutually exclusive i.e., a mortgage can be conventional, commercial and first ranking – please enter the data in all rows that applies) |
Number of Mortgages | Dollar value of Mortgages |
---|---|---|
a. Residential[6] | ||
b. Commercial[7] | ||
c. Other | ||
c-i. Specify the types of mortgages included under “Other” | ||
TOTAL (a+b+c) |
d. Conventional[1] | ||
e. High Ratio[2] | ||
f. High Ratio – uninsured[3] | ||
TOTAL (d+e+f) |
g. First Mortgage | ||
h. Second Mortgage | ||
i. Other Third Mortgage | ||
j. Other Mortgages (4th, 5th, etc.) | ||
TOTAL (g+h+i+j) |
k. New Loans | ||
l. Renewals[4] | ||
TOTAL (k+l) |
Secondary Mortgage Classifications (Categories are not mutually exclusive, i.e., a mortgage can both be a construction mortgage and a sub-prime) |
Number of Mortgages | Dollar value of Mortgages | ||
---|---|---|---|---|
m. Reverse | ||||
n. Sub-Prime[5] | ||||
o. Construction Mortgages[8] | ||||
p. Home Equity Line of Credit (HELOC) | ||||
q. Equity-Based Lending[9] | ||||
r. First-time homebuyer mortgage[10] | ||||
s. Bridge Loan Mortgage[11] |
NOTE: Mortgage business may fall under one or more categories. There is no requirement for the number or value of secondary mortgage classifications to equal total mortgage business.
1 Conventional: Loan to Value Ratio less than or equal to 80%.
2 High Ratio: Loan to Value Ratio greater than 80% and insured with mortgage default insurance.
3 High Ratio - Uninsured: Loan to Value Ratio greater than 80% and uninsured
4 Renewals: Mortgages that were originally placed by the brokerage and renewed with the same lender on the same property. Renewals are any extensions of the terms of the mortgage that were not originally contemplated.
5 Sub-Prime: For the purposes of this return, sub-prime business shall mean arranging a mortgage for individual(s) with a mean credit score of 600 points or less. It is based on the credit worthiness of the individual borrower(s).
6 Residential: A mortgage entered into with an individual borrower that is secured by a residential property with four units of less, or a single residential unit within a strata condominium.
7 Commercial: a mortgage entered into with a borrower, lender or investor that is not a residential mortgage.
8 Construction and development: a mortgage entered into with a borrower, investor or lender for the purpose of financing the construction of a building or property development project.
9 Equity-Based Lending (or Asset-based Lending): the generic term for mortgage lending based primarily on the value and marketability of the real estate property collateral and other additional securities. Some examples of equity-based lending solutions offered by "Alternative Lenders" are Stated Income, No Income Qualifier (NIQ), No Doc, or Self-Employed Mortgages and require little or no income documents, relying on risk mitigation strategies by knowledgeable brokerages
10 First-time homebuyer mortgage: mortgages with 1 or more first-time homebuyer borrowers
11 Bridge Loan Mortgage: A short-term loan usually backed by some form of collateral, used until a borrower secures permanent financing or pays an existing obligation. These would not include bridge loans provided by the lender offering the permanent financing.
23. Provide the following information regarding the brokerage’s business for each of these lenders:
(23a.) Type of lender |
(23b.) Number of mortgages |
(23c.) Dollar value of mortgages |
(23d.) Dollar value of fees received from the lender* |
(23e.) Total number of different lenders used for the mortgage transactions |
---|---|---|---|---|
Financial Institutions: | ||||
Bank
|
||||
Credit Union
|
||||
Insurance Company
|
||||
Trust Company
|
||||
Mortgage Finance Company / Monoline |
||||
Alternative Lenders: | ||||
Mortgage Investment Corporation
|
||||
Mortgage Investment Entity (MIE), Other than MIC
|
||||
Private Lender
|
||||
Self-Funding (Brokerage’s own funds)
|
||||
Other
|
Syndicated Mortgage Business | Number of mortgages | Dollar value of mortgages | Dollar value of fees received from the lender* | Total number of different lenders used for the mortgage transactions |
---|---|---|---|---|
Qualified Syndicated Mortgages | ||||
Non-Qualified Syndicated Mortgages |
Bank: Federally Regulated Financial Institutions incorporated (as a Schedule I or II bank) under the Bank Act.
Credit Union: A corporation incorporated or continued as a credit union or caisse populaire.
Insurance Company: Insurance Company incorporated or registered under the Insurance Companies Act.
Mortgage Finance Company (MFC) / Monoline: An MFC or “Monoline” lender is a non-depository financial institution that underwrites and services mortgages sourced through brokers.
Mortgage Investment Corporation (MIC): An investment/lending company designed specifically for mortgage investing or lending, in Canada, and governed by the Income Tax Act (Canada).
Mortgage Investment Entity (MIE), Other than MIC: A MIE is a mortgage-financing business that pools together money from investors to lend on mortgages. MIEs can vary in organizational structure, and may be a trust, a limited partnership or a corporation.
Private Lender: A person or business, other than a MIC or MIE, who lends their own funds for a mortgage including individual mortgage brokers or agents. (Brokerages that lend their own funds are self-funding)
Self-Funding: Brokerages that lend their own funds
Trust Company: A trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada).
Other: Lenders that do not belong to any of the other types of lenders listed above.
23f. If Mortgage Investment Corporation (MIC) is selected as a type of lender used in a mortgage, provide the names of the top three MIC lenders based on the total dollar value of mortgages during the reporting period.
Mortgage investment corporation (Name of top three lenders) (23f-i.) |
Dollar value of mortgages (23f-ii.) |
Number of mortgages (23f-iii.) |
Relationship between the lender to the brokerage, its broker or agents - arm’s length relationship - related persons/entities (23f-iv.) |
---|---|---|---|
[Select from list] | |||
[Select from list] | |||
[Select from list] |
“Related persons/entities“ includes family members, affiliates, officers, directors, partners, employees, brokers, agents, principal shareholders, etc. of the brokerage.
23g. If Private Lender is selected as a type of lender that was used in a mortgage, provide the names of the top five Alternative Lenders (including private lenders) based on total number of mortgages during the reporting period.
Alternative lender: (Top five lenders) (23g-i.) |
Type of Alternative Lender [Select from list: (a) MIE other than MIC, and (b) private lender who are persons or businesses other than MIC & MIE.] (23g-ii.) |
Number of mortgages (23g-iii.) |
Dollar value of mortgages (23g-iv.) |
Relationship of the lender to the brokerage, its broker or agents - Staff member of the brokerage e.g., broker/agent, other staff, etc. - Related persons/entities (non-arm’s length relationship) - Unrelated persons/entities (arm’s length relationship) (23g-v.) |
---|---|---|---|---|
[Select from list] | ||||
[Select from list] | ||||
[Select from list] | ||||
[Select from list] | ||||
[Select from list] |
“Related persons/entities“ includes family members, affiliates, officers, directors, partners, employees, brokers, agents, principal shareholders, etc. of the brokerage.
23g-vi. If more than five (5) private lenders, upload a list of all private lenders in a mortgage that was closed by the brokerage during the reporting period (provide the legal first and last name of the lender if an individual or the legal business name of the lender if an entity):
23h. In private lending transactions, how often did you represent only the borrower, only the lender, and both the borrower and the lender within the same transaction:
Represented Party within a private lending transaction with individual private lenders | Percentage of Private Lending Transactions |
Only the Borrower | |
Only the Lender | |
Both the borrower and the lender within the same mortgage transaction |
23i. Did the brokerage arrange any private mortgage renewals during the reporting period?
▢ Yes
▢ No
If yes, provide the following information regarding the private mortgage renewals (1st renewals do not need to be reported):
Renewal Type | Number of borrowers | Number of mortgage renewals |
2nd Renewal | ||
3rd or more Renewal |
23i-i. Please provide the number of borrowers that renewed (1st renewal or more) a private mortgage with the same private lender:
23i-ii. Please provide the number of borrowers that refinanced a private mortgage with a different private lender:
23j. Provide the total number of private mortgages closed with the annual percentage rate cost of borrowing range below:
Annual Percentage Rate (Cost of Borrowing) Range | Number of Mortgages |
0-10% | |
11-20% | |
21-30% | |
Greater than 31% |
23k. If Mortgage Investment Entity (MIE), other than MIC is selected as a type of lender in a mortgage, provide the names of the top three MIE lenders based on total dollar value.
Mortgage Investment Entity (MIE), other than MIC (Top three lenders) (23k-i.) |
Dollar value of mortgages (23k-ii.) |
Number of mortgages (23k-iii.) |
Relationship between the lender to the brokerage, its broker or agents - arm’s length relationship - related persons/entities (23k-iv.) |
---|---|---|---|
(Max 100 characters) | [Select from list] | ||
(Max 100 characters) | [Select from list] | ||
(Max 100 characters) | [Select from list] |
23l. During the reporting period, did the brokerage charge any fees* to the borrower?
▢ Yes
▢ No
23l-i. If Yes, provide the total dollar value of fees* received.
* Fees received from the borrower can include but are not limited to: Broker fees, advance fees, and assignment fees.
24. Did the brokerage carry out the business of trading in mortgages as defined by MBLAA, including buying, selling or exchanging mortgages in whole or in part during the reporting period?
▢ Yes
▢ No
If yes,
24a. On behalf of a person or entity?
▢ Yes
▢ No
Number of mortgages
Dollar value of mortgages
24b. On the brokerage’s own behalf?
▢ Yes
▢ No
Number of mortgages
Dollar value of mortgages
Mortgage investment corporation
The questions in this section are intended for information gathering purposes only, and not for compliance purposes.
NOTE: For the purpose of the AIR, a Mortgage Investment Corporation (MIC) is an investment/lending company designed specifically for mortgage investing or lending, in Canada, and governed by the Income Tax Act.
The MIC is organized for investing in pools of mortgages, primarily residential, and manages a diversified and secured portfolio of mortgages. Profits generated by the MIC are distributed to its shareholders according to their proportionate share.
25. Did the principal broker, officers or directors of the brokerage have any equity interest including beneficial ownership in a Mortgage Investment Corporation (MIC) as at December 31, 2023?
▢ Yes
▢ No
25a. If Yes, list all applicable names, their corresponding equity interest, and the legal name of any MIC they have an equity interest in:
26. Did the principal broker, officers, directors or controlling shareholders of the brokerage hold any management roles in a MIC in any jurisdiction as at December 31, 2023?
▢ Yes
▢ No
26a. If yes, provide the following information regarding all individual and entity holding a management role in the MIC:
Name of individual or entity holding a management role in the MIC | Position within the MIC | Legal name of MIC |
---|---|---|
26b. Were any of the MICs fully managed by the principal broker, an agent or broker of the brokerage?
▢ Yes
▢ No
If Yes, does the principal broker approve all loans funded by the MIC?
▢ Yes
▢ No
▢ Do not know
27. Provide the names of all MICs in which the principal broker, officers or directors of the brokerage hold any management roles or have any equity interest including beneficial ownership, that sold their units/shares/etc. to investors through a prospectus or Offering Memorandum filed with a securities commission.
Syndication
(The purpose of these questions is to verify compliance with legal obligations under the MBLAA and to gather marketplace statistics.)
Qualified syndicated mortgage investment (“QSMI”) definition:
A syndicated mortgage is a qualified syndicated mortgage if all of following criteria are satisfied in respect of the syndicated mortgage:
- the syndicated mortgage secures a debt obligation on property that
- is used primarily for residential purposes
- includes no more than four units
- includes no more than one unit that is used for non-residential purposes
- the syndicated mortgage does not secure a debt obligation incurred for the construction or development of property
- At the time the syndicated mortgage is arranged, the amount of the debt it secures, together with all other debt secured by mortgages on the property that have priority over, or the same priority as, the syndicated mortgage, assuming in all cases that the maximum amounts of any such mortgages are fully drawn, does not exceed 90 per cent of the fair market value of the property relating to the mortgage, excluding any value that may be attributed to proposed or pending development of the property.
- the syndicated mortgage cannot be subordinated to future financing without the consent of each lender
- there is no existing agreement that requires any lender of the syndicated mortgage to consent to future subordination of the syndicated mortgage
- no person has the ability to consent to future subordination of the syndicated mortgage on behalf of the lenders of the syndicated mortgage without obtaining the consent of each lender. O. Reg. 695/20, s. 1 (4)
A syndicated mortgage that secures a debt obligation incurred for the construction or development of property is not a qualified syndicated mortgage.
Non-qualified syndicated mortgage: A syndicated mortgage which does not meet the requirements of a qualified syndicated mortgage.
The transfer of regulatory oversight of certain syndicated mortgages from FSRA to the Ontario Security Commission (“OSC”) took effect on July 1, 2021. The QSMI definition above has been replaced effective July 1, 2021, to align with the OSC definition. Please refer to FSRA Guidance on the Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments for more details.
28. Have you made any changes to your policies and procedures manual related to NQSMIs and the process surrounding Permitted Clients class determination since the last NQSMI Quarterly report submitted to FSRA (if no report was ever submitted, please select “Yes”)?
▢ Yes
▢ No
If yes, please provide us with a PDF copy of the specific sections. (Do NOT upload your entire manual)
29. Did you deal and/or trade in NQSMI during the reporting period of January 1, 2023 to December 31, 2023?
▢ Yes
▢ No
NQSMI Portfolio Details – Reporting Period of January 1, 2023 to December 31, 2023 Brokered and Closed NQSMI transactions (In Ontario)
NOTE: FSRA considers an Ontario mortgage to be a mortgage where any of the borrower(s), any of the lender(s) or the mortgaged property is in Ontario.
30. For the reporting period of January 1, 2023, to December 31, 2023, did the brokerage broker and close any non-qualified syndicated mortgages (brokered or co-brokered)?
▢ Yes
▢ No
Co-Brokered: More than one mortgage brokerages are involved in the origination of the same mortgage.
30a. If Yes, for the reporting period of January 1, 2023, to December 31, 2023, please provide details on new NQSMI transactions that were brokered and closed in Ontario:
These would be NQSMI transactions arranged for a consumer (investor/lender or borrower) in Ontario and for which, in the case of an investor/lender, a disclosure Form 3.2 would have previously been filed with FSRA under the June 8, 2019 FSRA Fee Rule. The term "NQSMI transaction" refers to the syndication itself and not individual syndications within. This reporting only applies to NQSMI transactions with Permitted Clients investors/lenders.
30a-i. Total number of NQSMI transactions brokered and closed during the reporting period | |
30a-ii. Total committed amount of NQSMI transactions at origination | |
30a-iii. Total advanced amount of NQSMI transactions to date | |
30a-iv. Total number of NQSMI transactions brokered and closed during the reporting period that were for construction purposes | |
30a-v. Total number of renewed NQSMI transactions |
Committed Amount: The funds a lender or investor commits to lend to a borrower in a mortgage document such as a Commitment Letter
Advanced Amount: Total funds disbursed to a borrower on a specific mortgage at the time of reporting
Renewals: Any extensions of the terms of the mortgage that were not originally contemplated versus Contractual Extensions of terms that are agreed upon extensions to the terms of the original mortgage
31. Please download and answer the questions relating to your NQSMI Ontario Portfolio details in the attached excel file.
Click on the Excel icon on the right to download Excel template, and use 'Arrow Up' button next to it, to upload completed template.
NQSMI Transactional Report* [XLSX]
*This is for preliminary work only. Only the protected version of the spreadsheet that is downloaded from the Licensing Link platform can be uploaded back into to AIR. Any other version will not be accepted.
Please note that only the original excel file can be uploaded, any changes in formatting in the excel file will not be accepted. Please ensure the information in the Excel Spreadsheet is completed in a continuous fashion and that there are no empty rows when completing each tab.
32. For Legacy NQSMI mortgages issued before July 1, 2021, how many non-qualified syndicated mortgages were contractually extended between January 1, 2023 and December 31, 2023?
NQSMI Contractual Extensions | |
---|---|
Number of Mortgages | |
Dollar Value of Mortgages |
Contractual Extensions: Mortgage term extensions that have been contemplated in the initial mortgage documents.
33. Did the brokerage refer any clients to other licensed brokerages to invest in non-qualified syndicated mortgages in the 2023 calendar year?
▢ Yes
▢ No
33a. If Yes:
How many clients did the brokerage refer?
33b. Provide the dollar amount of compensation received by the brokerage for referring clients to invest in non-qualified syndicated mortgages.
33c. Does your brokerage have policies and procedure which relate specifically to the referral of clients for the purpose of investing in non-qualified syndicated mortgages?
▢ Yes
▢ No
If No, explain:
Complaints and complaint handling
34. Is the person designated to receive complaints at the brokerage the principal broker?
▢ Yes
▢ No
34a. If No, please provide the contact information of the person(s) designated to receive complaints for the brokerage:
Name | Position Title | Phone Number | |
---|---|---|---|
Confirm complaints email is regularly monitored:
▢ Yes
▢ No
If no, explain
35. Total number of written complaints received by the brokerage during the reporting period:
35a. Please indicate the number of complaints that originated from each of the following sources:
Complaint Source | Number of Complaints Received |
---|---|
Borrower | |
Lender (other than MIC or MIE) | |
MIC or other MIE (LP/GP, Trust, etc.) | |
Regulator (Other than FSRA) | |
Other |
If other complaint source was indicated, specify the source:
35b. Of the total written complaints received, how many were responded to, as required by legislation?
NOTE: The brokerage must respond, in writing, to all written complaints that are received.
35c. Of the total written complaints received, how many were resolved as at December 31, 2023?
NOTE: For the purpose of the AIR, “resolved” means that the brokerage has addressed and responded in writing to all concerns raised by the complainant.
35d. Provide the following breakdown for the total written complaints received:
Complaint Category | Number of Complaints | Comments (Provide a brief explanation about the types of complaints received by the brokerage for each category) |
---|---|---|
1. Administration Complaints regarding administrative practices e.g., failing to return original records, record-keeping, payment schedule problems, contractual disputes (client fees or services) and customer service (client expectations). |
||
2. Disclosure Complaints regarding disclosure requirements e.g., disclosure of potential conflicts of interest, material risks, or fees as it relates to the mortgage transaction, improper release of personal information. |
||
3. Marketing & Sales Complaints regarding product suitability, incomplete, inappropriate or misleading public relations material, high pressure sales tactics, tied selling. |
||
4. Fraud Complaints regarding deceptive or deliberate practices to secure unfair or unlawful gain, e.g., falsifying documents or information related to a mortgage transaction or arrangement, defalcation. |
||
5. Fees Complaints regarding fees involved in the mortgage brokering transaction e.g., amounts charged to client from brokerage, broker, or agent. |
||
Total |
35e. Did the brokerage receive any complaints relating to Non-Qualified Syndicated Mortgages?
▢ Yes
▢ No
If Yes, how many complaints?
35f. Did the Brokerage report all Non-Qualified Syndicated Mortgage complaints to the FSRA CEO within 10 business days of receiving them?
▢ Yes
▢ No
If No, explain why they were not reported:
Suitability
The purpose of these questions is to help further determine if the mortgage brokerage is suitable to continue to be licensed.
Note: Individual disclosures must also be reported on license applications (if applicable)
36. Were there any E&O claims made against the brokerage during the reporting period in any Canadian jurisdiction, during the reporting period?
▢ Yes
▢ No
If Yes:
36a. How many claims were made?
36b. Provide a brief explanation:
37. During the reporting period, was the brokerage or any of its Directors, Officers or Partners fined or were any monetary penalties imposed by any other Canadian regulator, excluding FSRA?
▢ Yes
▢ No
37a. If Yes, indicate which regulator type, or both:
▢ Financial Services Regulator (e.g., AMF, BCFSA, IIROC, OSC)
▢ Other Regulator
Provide a brief explanation (indicate which regulator, the name of the person/entity, and licence number if applicable):
“Related persons/entities“ includes family members, affiliates, officers, directors, partners, employees, brokers, agents, principal shareholders, etc. of the brokerage.
38. During the reporting period, did the brokerage or any of its Directors, Officers or Partners have any overdue fines/monetary penalties owing to any Canadian financial services regulator excluding FSRA?
▢ Yes
▢ No
38a. If Yes, provide a brief explanation:
39. During the reporting period, was the brokerage or any of its Directors, Officers or Partners fined or were any monetary penalties imposed by any Provincial/Federal courts?
▢ Yes
▢ No
39a. If Yes, provide a brief explanation:
40. During the reporting period, was the brokerage or any of its Directors, Officers or Partners subject to any charges laid under the laws of any Canadian province/territory?
▢ Yes
▢ No
40a. If Yes, provide a brief explanation:
41. During the reporting period, were any licences the brokerage or any of its Directors, Officers or Partners held from a government agency, regulatory body or professional organization revoked or suspended?
▢ Yes
▢ No
41a. If Yes, provide a brief explanation:
42. During the reporting period, was the brokerage or any of its Directors, Officers or Partners named in a lawsuit (Statement of Claim, Counterclaim or Third-party Claim)?
▢ Yes
▢ No
42a. If Yes, provide a brief explanation:
Remuneration
43. Did your brokerage receive monetary or non-monetary incentives from lenders?
▢ Yes
▢ No
NOTE: Monetary incentives may include but not limited to: Credit cards, gift cards.
Non-monetary incentives may include but not limited to: Reward points, trips, gifts, event tickets, memberships.
43a. If Yes, from how many lenders did the brokerage receive non-monetary incentives?
44. Did your brokerage offer monetary or non-monetary incentives to other parties?
▢ Yes
▢ No
45. Did your brokerage receive contingency commission (i.e., volume bonus) or payment arrangements with any lenders?
▢ Yes
▢ No
45a. If Yes, from how many lenders did the broker receive contingency commissions?
46. Did your brokerage have tri-party compensation agreements for non-monetary incentives between your brokerage, brokers/agents, and other brokerages?
▢ Yes
▢ No
46a. If Yes, explain:
47. How many brokers and/or agents are remunerated through a personal corporation?
48. Describe your compensation structure in the first year and beyond for brokers/agents?
▢ Commission Split
▢ Salary
▢ Other (please describe)
49. What percentage of your brokers/agents receive the following split of fees paid to the brokerage? (Percentage of commission and/or brokerage fee paid to the broker/agent)
90%+
80-89%
70-79%
60-69%
50-59%
Below 50%
Total =
___
___
___
___
___
___
100%
Reminder: All mortgage transaction fees should go through the brokerage
50. What are the key factors you consider when establishing a commission/fee split with brokers/agents?
Referrals
51. During the reporting period, did the mortgage brokerage make any referrals to other mortgage brokerages?
▢ Yes
▢ No
51a. If Yes, how many referrals did the mortgage brokerage make?
51b. Provide the total dollar amount of compensation received by the mortgage brokerage for these referrals.
52. During the reporting period, did the mortgage brokerage receive any referrals from other mortgage brokerages?
▢ Yes
▢ No
If Yes,
52a. How many referrals did the mortgage brokerage receive from other brokerages?
52b. Provide the total dollar amount of compensation paid by the mortgage brokerage for these referrals.
53. During the reporting period, did the mortgage brokerage receive any simple referrals from unlicensed entities?
▢ Yes
▢ No
53a. How many simple referrals from unlicensed entities did the mortgage brokerage receive?
53b. Provide the total dollar amount of compensation paid by the mortgage brokerage for these simple referrals.
For purposes of the AIR, compensation may include but is not limited to: Finders’ fees, credit cards, gift cards, tickets, reward points.
A “simple referral” is defined in subsections 6(4) and 6(5) of the MBLAA and sections 1 and 2 of Ontario Regulation 407/07.
Consumer profile
The purpose of this section is to get a better understanding of consumer demographics serviced by the mortgage brokering industry
For the purposes of this section:
- clients/consumers = individual (non-entity) borrowers, unless otherwise specified
- data is requested for closed transactions, during the reporting period
- The assessment criteria are evaluated both individually and in the context of the whole picture of the brokerage’s business operations. No one indicator is a deciding factor in whether a brokerage is selected for examination.
54. Did the brokerage represent individual (non-entity) borrowers in mortgage transactions brokered and closed in 2023?
▢ Yes
▢ No
55. What percentage of the brokerage’s individual (non-entity) borrowers fall into each of the following age ranges? (Help Tip: including all individual borrowers listed on mortgage application, excluding guarantors)
71+
55-70
35-54
18-34
Total:
_____%
_____%
_____%
_____%
_____%
56. For closed mortgage transactions during the reporting period, identify how many transactions had an average transaction TDS ratio within each of the following ranges.
*This includes transactions where TDS was not a decision factor for the lender (i.e., private lending may not use TDS as a decision factor, but it should still be a known number).
=>80%
60%-79%
43%-59%
30%-42%
20%-29%
<20%
Unknown
Total:
_____
_____
_____
_____
_____
_____
_____
_____ (the total number here should match the total number of completed loans indicated in Q18)
57. How many transactions included at least one borrower who was considered self-employed or who had variable income?
*Please include borrowers who had a mix of variable and stable income sources (e.g., base + commission, overtime, etc.) For further clarity, if the transaction had variable income, it should be counted, even if that income only represented a small portion of the total qualifying income.
Definition: Variable income is income that is not guaranteed or predictable such as commission, investment income, bonus, and all self-employed borrowers. This is in contrast to stable (or predictable) income such as salary, guaranteed hours, other guaranteed income.
_____ (#)
58. How many referrals did the brokerage, and its brokers/agents, receive from each of the following sources:
*Please include all known referrals (ad-hoc and pre-arranged), regardless of whether referral fees are required or have been paid/received.
Finance and/or Payday Loan Companies:
Debt Collection Agencies:
Credit Counselling Services:
Trustees in Bankruptcy:
Other:
Total:
_____
_____
_____
_____
_____ If Other, please describe:
_____
59. In how many completed transactions did borrowers rely on the authority of a Power of Attorney?
_____ (#)
Closing questions
(These Questions are for statistical purposes)
60. Do you use technology to automate the process, or part of the process, of collecting and verifying borrower information?
▢ Yes
▢ No
If yes, please describe the technologies used.
61. Do you use technology to automate the client needs assessment and advising process, in part or in full, when recommending what potential mortgage is most suitable for a client?
▢ Yes
▢ No
If yes, please describe the technologies used.
62. Select the software used for collecting statistical data requested in the AIR (Select all that apply)?
▢ Expert
▢ Expert Pro
▢ Boss
▢ Velocity
▢ Scarlett
▢ Filogix
▢ Spreadsheets (Ex. Excel)
▢ CRM Software (If selected, what is the name of the program)
▢ Other: _____
63. How long did it take to gather the information and complete the AIR?
Hours: Minutes:
Attestation
I __________________________________________________________ of
Print Name
__________________________________________________________
Brokerage
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.
________________________________________________________
Signature
________________________________________
Date
NOTE: Only the principal broker of the brokerage can submit this Annual Information Return. The above name must match the name on the principal broker's licence.