Mortgage Brokerages, Lenders and Administrators Act, 2006 - Additional Draft Regulations for Consultation

III. Consultation Draft Regulations

9) Mortgage Administrators: Licensing

MORTGAGE BROKERAGES, LENDERS AND ADMINISTRATORS ACT, 2006 AMENDING O.REG. 411/07

Note: This is a draft regulation for discussion purposes. The Mortgage Brokerages, Lenders and Administrators Act, 2006 is not in force.

1. Subsection 1 (1) of Ontario Regulation 411/07 is amended by adding the following paragraph:

5. The corporation has a trust account, designated as its mortgage administrators trust account, at a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), at a credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies, at a corporation registered under the Loan and Trust Corporations Act or at a retail association as defined under the Cooperative Credit Associations Act (Canada).

2. Subsection 2 (1) of the Regulation is amended by adding the following paragraph:

5. The partnership has a trust account, designated as its mortgage administrators trust account, at a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), at a credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies, at a corporation registered under the Loan and Trust Corporations Act or at a retail association as defined under the Cooperative Credit Associations Act (Canada).

3. Subsection 3 (1) of the Regulation is amended by adding the following paragraph:

5. The sole proprietorship has a trust account, designated as its mortgage administrators trust account, at a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), at a credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies, at a corporation registered under the Loan and Trust Corporations Act or at a retail association as defined under the Cooperative Credit Associations Act (Canada).

4. The Regulation is amended by adding the following section:

Criteria re surrender of licence

4.1 The following criteria are prescribed for the purposes of subsection 20 (3) of the Act as criteria to which the Superintendent shall have regard when determining whether the surrender of a mortgage administrators licence is not in the public interest:

1. Whether the applicant has any funds remaining in its mortgage administrators trust account that was being maintained under the standards of practice.
2. Whether any funds in the applicants mortgage administrators trust account have not been accounted for.
3. Whether the applicant has failed to make reasonable arrangements for winding up or transferring its business of administering mortgages in Ontario.
4. Whether the applicant has failed to make reasonable arrangements for the retention of the records required by the standards of practice, or has failed to inform the Superintendent about the location in which the records are to be kept.
5. Whether any deeds, instruments or agreements signed by or on behalf of a lender or investor and any other documents given to the applicant by a lender or investor in connection with the applicants business of administering mortgages have not been returned.
6. Whether the applicant has any outstanding fees, charges or penalties payable under the Act.

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