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

III. Consultation Draft Regulations

3) Mortgage Brokers and Agents: Standards of Practice

under the

MORTGAGE BROKERAGES, LENDERS AND ADMINISTRATORS ACT, 2006

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

Interpretation

1. (1) Expressions used in this Regulation have the same meaning as in the standards of practice prescribed for brokerage licences.

(2) In this Regulation,

"licensee name" means, in relation to a mortgage broker or agent, the name in which the licence is issued;

"public relations materials" means, in relation to a mortgage broker or agent,

  1. any advertisement by the broker or agent that is published, circulated or broadcast by any means, or
  2. any material that a broker or agent makes available to the public in connection with his or her status as a licensee or his or her dealing or trading in mortgages.
Standards of practice

2. The requirements set out in this Regulation are prescribed as standards of practice for every mortgage brokers licence and mortgage agents licence that is issued under the Act.

Duty re authorizing brokerage

3. A mortgage broker or agent shall not do or omit to do anything that causes the brokerage on whose behalf he or she is authorized to deal or trade in mortgages to contravene or fail to comply with a requirement established under the Act.

Restriction re remuneration

4. A mortgage broker or agent is prohibited from receiving, directly or indirectly, any fee or other remuneration for dealing or trading in mortgages from a person or entity other than the brokerage on whose behalf he or she is authorized to deal or trade in mortgages.

Use of licensee name

5. A mortgage broker or agent shall not deal or trade in mortgages in a name other than his or her licensee name.

Use of name, etc., in public relations materials

6. (1) In all of his or her public relations materials, a mortgage broker or agent shall disclose his or her licensee name and licence number and the authorized name and licence number of the brokerage on whose behalf he or she is authorized to deal or trade in mortgages, and the names and numbers must be clearly and prominently disclosed.

(2) If the authorized name of the brokerage is, or includes, a franchise name that the brokerage is permitted to use under a franchise agreement, the public relations materials must clearly indicate that the brokerage is independently owned and operated.

(3) In the public relations materials, at least one of the references to the broker or agent must include one of the following titles:

  1. When referring to a broker, the title "mortgage broker", "broker", "courtier en hypothques" or "courtier", an abbreviation of any of those titles or an equivalent title in another language.
  2. When referring to an agent, the title "mortgage agent", "agent" or "agent en hypothques", an abbreviation of any of those titles or an equivalent title in another language.
Duty to provide licence information

7. Upon request, a mortgage broker or agent shall give to a person the brokers or agents licensee name, licence number and the authorized name and licence number of the brokerage on whose behalf the broker or agent is authorized to deal or trade in mortgages.

Required addresses

8. (1) A mortgage broker or agent shall maintain a mailing address in Ontario that is suitable to permit service by registered mail.

(2) A mortgage broker or agent shall maintain an e-mail address.

Back to Table of Contents