FSRA Stakeholder Advisory Committee for Mortgage Brokering

1. Introduction

The Financial Services Regulatory Authority of Ontario (FSRA) is committed to an open, transparent and collaborative approach that involves stakeholders and ensures broad input and perspectives to inform its direction.

Stakeholder Advisory Committees (SACs) will serve as consultative bodies to the FSRA Board as well as management. They are an important part of FSRA’s stakeholder engagement process as it relates to FSRA’s priorities, budget, principles-based regulation and other matters as the Board or management deems appropriate.

These Terms of Reference relate to FSRA’s role in the Mortgage Brokering sector, which includes:

  • licensing mortgage brokers, agents, brokerages and administrators in Ontario
  • regulating the conduct of licensees
  • working with industry partners to ensure compliance with the Mortgage Brokerages, Lenders and Administrators Act, 2006 and its regulations
  • supervising the mortgage brokering and administration activities in Ontario to ensure fair treatment of consumers
  • collecting information about mortgage brokerages’ and administrators’ business practices and internal controls, as well as industry trends, through an Annual Information Return (AIR)

These Terms of Reference are intended to inform the creation and operation of the Mortgage Brokering SAC.

2. Mandate of the Stakeholder Advisory Committee

The Mortgage Brokering SAC will:

  1. inform FSRA’s annual business planning, with a focus on the Mortgage Brokering-related priorities and budget that will guide FSRA’s operations and regulatory activity, before they are published and delivered to the Minister of Finance
  2. provide feedback on the progress made by FSRA on its Mortgage Brokering priorities from the previous annual business plan
  3. provide forward looking insights and trends to the Board of Directors
  4. upon request of FSRA, provide a forum for input on Mortgage Brokering sector issues, FSRA priorities and other initiatives or activities involving FSRA
  5. have the opportunity for an in-camera session with the Board, at least annually, to raise any issues related to FSRA management and the Mortgage Brokering sector that the SAC wishes to discuss with the Board without the presence of FSRA management

The Board or FSRA management may decide to convene a SAC meeting to discuss any other issue related to the regulation of the Mortgage Brokering sector and may decide to combine SACs from different sectors for such a meeting.

3. Nomination and appointment of Stakeholder Advisory Committee members

Appointments to the Mortgage Brokering SAC will be made through an open nomination process posted online. Selections will be made by FSRA, based in part on the experience of the individuals who are put forward, their role in the sector and other factors that FSRA may determine are relevant.

The Mortgage Brokering SAC will have a target membership of fourteen stakeholder members of which up to three are intended to be consumers and the remainder will represent regulated entities, associations representing regulated entities or professionals advising regulated entities (based on qualifications set out in Appendix 1). FSRA can choose to add or remove any member of the SAC at any time, and a SAC member may resign by giving written notice.

FSRA is looking for members for a two-year term commencing in September 2024 and this term may be renewed by FSRA for one additional year to allow membership to be staggered to provide continuity to the Committee.

FSRA will publish the names of the members of the Mortgage Brokering SAC on its website.

4. Members of the Stakeholder Advisory Committee

Stakeholder nominees to the Mortgage Brokering SAC should be senior members of their respective organizations or professions. Successful nominees will be expected to place the public interest ahead of personal and professional interests in the discharge of their committee responsibilities. See Appendix 1 for specific experience FSRA is seeking to have represented through the stakeholder members of the Mortgage Brokering SAC.

To ensure FSRA has a cross-section of views, we welcome consumer representation on the Mortgage Brokering SAC. Consumer members should ideally have personal experience as Mortgage Brokering customers and will not be expected to have specialized knowledge of the Mortgage Brokering sector.

Responsibilities of Mortgage Brokering SAC members will include:

  • reviewing background material in preparation for meetings
  • attending meetings (delegation is not permitted if a member is unavailable, but FSRA may appoint another Mortgage Brokering SAC member on an interim basis if a member is unavailable due to incapacity or other justifiable temporary cause)
  • providing advice, information and feedback to FSRA
  • using best efforts to develop consensus and to identify any issues where stakeholder consensus does not exist, and the reasons for an absence of consensus
  • providing feedback to FSRA on the functioning of the Mortgage Brokering SAC
  • working with FSRA management and other SAC members to prepare for Mortgage Brokering SAC meetings with the Board

5. Public process, input from others and disclosure

The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information and material provided to and prepared by or for the Mortgage Brokering SAC.

Members of the Mortgage Brokering SAC are permitted to obtain assistance from co-workers or industry collaborators. However, members and those who assist them are required to maintain confidentiality of all information provided to the Mortgage Broking SAC or prepared by or for the Mortgage Brokering SAC for presentation or delivery to FSRA (with the exception of information made public by FSRA, including any submissions by the Mortgage Brokering SAC or its members as part of a public comment process sponsored by FSRA).

6. Meetings, agendas and deliverables

It is expected that the Mortgage Brokering SAC will participate in the following two-hour meetings:

  • with the Board of Directors on forward looking matters in May
  • with Management – on FSRA priorities (a progress meeting in the spring and then consultation on the draft priorities and budget in September/October)
  • there may be additional meetings as per the terms of reference

Membership and participation on the SAC is a volunteer opportunity; FSRA does not provide remuneration. However, consumers residing outside of the Greater Toronto Area are entitled to reimbursement for reasonable travel expenses they may incur in attending meetings in accordance with the FSRA-approved Travel, Meal and Hospitality Policy.

Members may be asked to prepare material for consideration by FSRA or for presentation to the Board.

FSRA management shall endeavour to provide meeting agendas and related materials at least one week in advance of each regular meeting. FSRA management shall prepare a summary of each SAC meeting with the Board and distribute it, including any accompanying written submissions, to members, typically within three weeks following a meeting. As part of these meetings, FSRA will communicate recommendations or feedback that has been adopted and what has been considered but not adopted. FSRA also intends to publish a high-level summary of the Mortgage Brokering SAC’s work on FSRA’s website within approximately three weeks of each meeting with the Board and management.

Appendix 1: Industry member qualifications

FSRA is seeking industry members that have in-depth experience in one or more of the following areas with respect to mortgages or real estate financing:

  • lending, including non-traditional (or private) mortgage lending
  • underwriting
  • administration or servicing
  • risk management & compliance
  • brokering
  • securitization
  • trading
  • real estate appraisals

Industry members will be selected with an emphasis on ensuring adequate representation of the mortgage brokering sector by geography and organization size. FSRA will also support diversity, equity and inclusion when selecting members.

In addition to direct industry representation, FSRA welcomes representatives from relevant industry associations within and related to the mortgage brokering sector.