If you are a registered real estate broker and wish to be exempt from the mortgage broker education and experience requirements, you must apply for a mortgage broker licence by June 30, 2009. After June 30, 2009, the real estate broker education and experience exemption will no longer be available on Licensing Link (FSCO's online licensing system).
Qualifying for the Exemption
Under section 12 of Regulation 409/07, you are exempt from the mortgage broker education and experience requirements if you were a registered real estate broker with the Real Estate Council of Ontario (RECO) as of June 30, 2008.
The Licensing System
Before you apply for a licence with FSCO, please make sure you understand that:
- Real estate brokers are no longer deemed to be mortgage brokers.
- Under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA), which went into effect on July 1, 2008, all individuals or businesses that wish to conduct mortgage brokering activities in Ontario must be licensed with FSCO.
- Businesses can obtain mortgage brokerage or administrator licences, while individuals can obtain mortgage broker or agent licences.
- If you plan to conduct mortgage brokering activities on behalf of your own business, you will need to:
- Obtain a mortgage brokerage licence for the business, AND a mortgage broker licence for yourself.
- Ensure that the mortgage brokerage's licence application is approved and the mortgage broker licence application is submitted online by the principal broker by June 30, 2009. (This will allow you to take advantage of the mortgage broker education and experience exemption. )
You also need to remember the following:
- The mortgage brokerage is the business entity that employs mortgage brokers. A mortgage broker cannot operate independently.
- The mortgage brokerage must be licensed before any mortgage brokers can work for the brokerage.
- After the mortgage brokerage is licensed, the principal broker needs to electronically submit his/her personal application and pay the required licensing fee.
- Once the principal broker is in place, he/she can electronically submit licence applications for other individuals who wish to work as mortgage brokers for the brokerage.
- All of these steps must be completed before midnight on June 30, 2009.
How to Become Licensed
To become licensed as a mortgage broker:
- You need to be authorized to conduct mortgage business on behalf of a licensed mortgage brokerage.
- You must meet FSCO's mortgage broker licensing requirements.
- Your licence application must be initiated by your mortgage brokerage's principal broker.
- You need to allow ample time for the licensing process. The real estate broker education and experience option on Licensing Link will not be available after midnight on June 30, 2009.
Businesses that wish to apply for a mortgage brokerage licence must:
- Submit the paper application form well in advance of the June 30, 2009 deadline, to ensure FSCO has enough time to review, approve and process the brokerage's application.
- Have errors and omissions insurance with extended coverage for fraud with a FSCO approved insurance provider. The errors and omissions insurance that is provided by RECO does not cover mortgage brokerages under the MBLAA.
- Properly complete the mortgage brokerage licence application. Incomplete applications will result in licensing delays.
No Extensions are Allowed
The law does not allow for any extensions. Please make sure you apply for a licence well in advance of the June 30, 2009 deadline. If you apply for a mortgage broker licence after June 30, 2009 you will need to successfully complete the approved mortgage broker course and exam, and have at least two years of experience as a licensed mortgage agent.
Links to Online Resources
For more information, refer to FSCO's:
Financial Services Commission of Ontario