CONSULTATION DRAFT REGULATION
made under the
MORTGAGE BROKERAGES, MORTGAGE LENDERS
AND MORTGAGE ADMINISTRATORS ACT
A CONSULTATION DRAFT
MORTGAGE ADMINISTRATORS : THE LICENSING PROCESS
REQUIREMENTS FOR A MORTGAGE ADMINISTRATOR'S LICENCE
- A corporation is eligible to have a mortgage administrator's
licence if all of the following requirements are satisfied:
- It must be incorporated under an Act of any jurisdiction
- It must have a mailing address in Ontario that is suitable
to permit service by registered mail.
- It must have errors and omissions insurance in a form
approved by the Superintendent with extended coverage
for loss resulting from fraudulent acts or it must have
some other form of financial guarantee in a form approved
by the Superintendent for such losses. The insurance or
guarantee must be sufficient to pay a minimum of $500,000
per claim and $1 million for all claims made in any policy
year against the corporation.
- It must have an irrevocable line of credit with a financial
institution, unencumbered assets or some other form of
financial guarantee in a form approved by the Superintendent,
in an amount equal to the corporation's operating
costs for three months as determined from the corporation's
most recent audited financial statements or by such other
means approved by the Superintendent.
- A corporation is not suitable to have a mortgage administrator's
licence if any of the following circumstances apply:
- Having regard to its financial position, the corporation
cannot reasonably be expected to be financially responsible
in the conduct of its business.
- The past conduct of any director or officer of the
corporation affords reasonable grounds for belief that
the business of the corporation will not be carried on
in accordance with law and with integrity and honesty.
- The corporation is carrying on activities that will
contravene the Act or the regulations if the corporation
- A director or officer of the corporation has made a
false statement or has provided false information to the
Superintendent with respect to the application for a licence.