Proposed guidance on Accreditation of Licensing Courses for the mortgage brokering sector

Comments were provided by seven stakeholders:

  • DLC Premier Financial
  • Mortgage Professionals Canada (MPC)
  • Rajesh
  • Rital Sejgal
  • Rock Capital Investments Inc.
  • Search Mortgage Corp
  • The Mortgage Trail Inc.

Most of the comments received are beyond the scope of this consultation guidance. We thank all the stakeholders for their comments.

Below is a summary of the comments received and FSRA’s responses.

Table 1: Stakeholder comments and FSRA’s responses

Subject

Summarized Comments

FSRA Response

Support for Approach
  • Two respondents indicated that they are supportive of the changes in accreditation standards:
    • MPC noted, “Improvement in standards will lead to consistency in student experiences across education providers which will benefit new entrants to the industry”
    • DLC noted, “This is a welcomes change.”

We thank the stakeholders for their support.

Agent and Broker Licensing Education
  • It is too easy to obtain credentials as a mortgage agent in Ontario.
  • More education should be required for new and current agents and brokers to enhance consumer protection and the reputation of the industry.
  • Agents’ licensing education should include topics such as Ethics, Transaction Costs, Disclosure and Calculations.

The comments provided are beyond the scope of this consultation on Accreditation of Licensing Courses for the mortgage brokering sector.
The feedback applies to a review of required agent competencies.

Other comments
  • Mortgage agents should be allowed to work independently with lenders as they have their own Errors and Omissions insurance.
  • FSRA should not allow mortgage brokerages or agents to also have a Real Estate brokerage or real estate salesperson licence.
  • The monetary cost to enrol in education course is inexpensive and should be higher.
  • Two respondents provided comments relating to fraud in the industry.
    • “Please make mandatory provision that all T4 and NOA documents be cross verified from CRA to check for mortgage fraud.”
    • “Fraud is still rampant, there are hundreds of agents and brokers in Ontario willing to falsify documents for a fee.”

The comments provided are beyond the scope of this consultation on Accreditation of Licensing Courses for the mortgage brokering sector.