Ensuring that the mortgage brokering industry in Ontario remains efficient and well-regulated is the responsibility of both the mortgage brokerages and mortgage administrator themselves, and the Financial Services Regulatory Authority of Ontario (FSRA). Here are all the resources you need to keep your mortgage brokerage or mortgage administrator compliant with the province's laws and regulations.
Annual Information Returns
FSRA requires all licensed mortgage brokerages and administrators to complete and submit their Annual Information Return (AIR) no later than March 31. The AIR collects information about your brokerage's business practices and internal controls, as well as market conditions, from the previous calendar year. FSRA uses this information as part of its risk assessment and oversight of mortgage brokerages and administrators, and to provide an overview of the mortgage brokering industry.
You can complete your brokerage's AIR through Licensing Link. For more information on how to complete the return, recent improvements and other compliance matters, view the latest AIR news and updates.
You can use this section to keep track of the standards of practice and reporting requirements for your mortgage brokerage or mortgage administrator. These standards and requirements are detailed in the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act), but are listed here for your convenience:
- Compliance Checklist for Mortgage Administrators
- Compliance Checklist for Managing the Mortgage Brokerage, Keeping Records and Trust Accounts
- Compliance Checklist for Mortgage Brokerages, Brokers and Agents
- Compliance Checklist for Managing the Mortgage Administrator, Keeping Records and Trust Accounts
- Reporting Requirements for Mortgage Administrators
Detecting and preventing mortgage fraud: a checklist for brokerages
Mortgage fraud is a growing problem that is estimated to cost hundreds of millions of dollars in Canada each year. To assist mortgage brokerages, administrators, brokers and agents in combating this issue, FSRA has developed a Checklist on Detecting and Preventing Mortgage Fraud.
This checklist is based on industry best practices and the standards of practice regulations under the Act. It was developed in consultation with industry stakeholders and is a helpful fraud prevention tool for Ontario’s mortgage brokering industry. Mortgage brokerages, administrators, brokers and agents are strongly encouraged to use this checklist in their day-to-day business.
To learn more about this checklist, review our frequently asked questions.
Non-qualified syndicated mortgage investments: regulatory obligations
A non-qualified syndicated mortgage is a more complex, higher-risk mortgage product that may not be suitable for the average investor. Such mortgages do not meet the regulatory definition of a qualified syndicated mortgage. If your brokerage deals in non-qualified syndicated mortgages, you have expanded obligations under the Act.
Please visit the non-qualified syndicated mortgage investments page to access the required forms that must be completed for each transaction for each investor/lender.
Mortgage brokerage compliance reviews: historical background
The current compliance requirements for mortgage brokerages are a product of FSRA's risk-based approach to regulation, which was also the approach of the Financial Services Commission of Ontario (FSCO), the regulatory body that preceded FSRA.
FSRA's risk-based approach to regulation allocates valuable regulatory resources to those areas deemed to represent the greatest risk of causing potential harm to Ontarians seeking financial services. The benefit of this approach is that regulatory resources are maximized and compliance costs are minimized.
During the Spring and Summer of 2009, FSCO conducted a review of the mortgage brokering industry as part of its compliance review initiative. This review focused on how the overall industry—particularly at the individual brokerage level—had prepared itself to meet the compliance requirements under the Act, with a specific focus on sections 40 to 48 of Ontario Regulation 188/08: Mortgage Brokerages: Standards of Practice.
Through this process, FSCO determined that its reviews would focus on specific standards under the Act and its regulations, particularly standards relating to policies and procedures, oversight and corporate governance. Although policies and procedures do not guarantee compliance with legislation, mortgage brokerages are expected to establish and implement policies and procedures that are reasonably designed to ensure compliance with the requirements under the Act.
Following the compliance review of mortgage brokerages in 2009, FSCO conducted a review of mortgage administrators during the Summer and Fall of 2010. The focus of the 2010 compliance review was on Regulation 189/08: Mortgage Administrators: Standards of Practice. The approach FSCO employed for these on-site reviews was consistent with the 2009 review.
The overall focus of examinations in 2010–2014 was to determine how well mortgage brokerages implemented the requirements set out by the Act and its related regulations, including in the areas of supervision (policies and procedures), Principal Broker responsibilities, public relations materials and disclosure requirements to borrowers and investors/lenders. During this period, FSCO examined almost half of licensed mortgage brokerages in Ontario.
The results of the reviews provided support for FSCO's and FSRA's risk-based approach to regulation and its positive impact on the mortgage brokering industry in promoting higher standards of practice for consumer protection in Ontario.
For additional background, read the complete 2015 Report on FSCO's Compliance Reviews of Mortgage Brokerages, 2010-2014, or consult these earlier reports: