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Backgrounder: Mortgage Brokerages, Lenders and Administrators Act, 2006

November 28 , 2006

Mortgage Brokerages, Lenders and Administrators Act, 2006
Industry Preparation for the New Licensing Regime

  • On November 27, 2006 Bill 65, the Mortgage Brokerages, Lenders and Administrators Act, received third reading. 
  • It is not anticipated that the legislation will be proclaimed until consultation has taken place on the associated regulations.
  • In addition, an appropriate amount of time will be allocated to provide for communication to the industry.
  • At this point, industry participants are not required to take any measures in anticipation of the new legislation.

Bill 65, the Mortgage Brokerages, Lenders and Administrators Act

Bill 65 replaces the existing Mortgage Brokers Act, which dates from the early 70s, to improve consumer protection with updated rules.  For example:

  • All mortgage brokers and agents would need to be licensed;
  • Mortgage brokerages would be responsible for properly supervising their brokers and agents;  and,
  • Administrative penalties would be introduced.

Consultation on Draft Regulations

A number of draft regulations, including licensing regulations, were released for public consultation on November 24, 2006.  The government is consulting on these regulations over a period that concludes on January 19, 2007.

Further regulations to be released include standards of practice for brokers, agents and administrators and administrative penalties.

Bill 65 and the draft regulations that have been released can be found on the government of Ontario website at www.gov.on.ca.

Next Steps

Once the licensing regulations have been approved, the Financial Services Commission of Ontario (FSCO) will be in a position to communicate the preliminary steps that will be required to move to the new licensing regime. 

Registrants under the current Mortgage Brokers Act will be contacted directly by FSCO and information regarding changes that need to be made over the coming months will be available on FSCO's website at www.fsco.gov.on.ca

 

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Contact:
Ministry of Finance Information Centre
1-800-263-7965 Toll-Free (Canada/U.S.) 		 

Disponible en français

For more information visit www.fin.gov.on.ca

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