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

Corporations

1.  
   1. A corporation is eligible to have a mortgage administrator's licence if all of the following requirements are satisfied:
      
      
      1. It must be incorporated under an Act of any jurisdiction in Canada.
         
         
      2. It must have a mailing address in Ontario that is suitable to permit service by registered mail.
         
         
      3. 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.
         
         
      4. 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.
         
         
   2. A corporation is not suitable to have a mortgage administrator's licence if any of the following circumstances apply:
      
      
      1. Having regard to its financial position, the corporation cannot reasonably be expected to be financially responsible in the conduct of its business.
         
         
      2. 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.
         
         
      3. The corporation is carrying on activities that will contravene the Act or the regulations if the corporation is licensed.
         
         
      4. 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.