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Mortgage Brokers Act, terms definitions and how it applies to real estate

The Tenant Protection Act takes precedence in this case


On July 1, 2008, the current Mortgage Brokers Act will be withdrawn and the new Mortgage Brokerages,Lenders and Administrators Act, 2006 will go into |11effect.

When the new Act goes into effect, all currentMortgage Broker registrations will expire, and all Mortgage Brokerages. Administrators, Brokers andAgents will require a licence to do business in Ontario.

Under the Mortgage Brokerages, Lenders andAdministrators Act, 2006, real estate brokers need to belicensed as Mortgage Brokers if they conduct mortgagebroker activities.

However, the Act does not require areal estate broker to be licensed if he/she is just providing referrals that give limited information about a borrower to a potential lender (and vice versa).

For more detailed information on exemptions fromthe requirements to be licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006, please refer to Ontario Regulation 407/07 (Exemptionsfrom the requirements to be licenced).

If you are a Financial Planner or other professional,and are simply providing your clients advice onmortgages, you are not considered to be "dealing ortrading in mortgage's."

The following Mortgage Agent education courses areacceptable under the new Act. if taken before July 1,2008 (courses are listed in alphabetical order):

* Canadian Association of Accredited MortgageProfessionals (CRAMPI- Canadian MortgageIndustry Course. Independent Mortgage Brokers Association of Ontario (IMBA)

-10 Steps to Becoming a SuccessfulMortgage Agent.

The Ontario Real Estate Association (OREA) -Mortgage Agent Educational Program (consistingof Phase 1, Phase 2 and Phase 3 Residential, Phase 3Commercial, Real Property Law and Principles of Mortgage Financing)

* Senaca College - Financial Services Underwriting101: Introduction to the Canadian MortgageIndustry (also referred to as "Mortgage Brokering") OR FSU 1 1 1:

Introduction to Mortgage Brokering Mortgage Brokerage A Mortgage Brokerage is a corporation, partnership orsole proprietorship that authorizes or allows licensed Mortgage Brokers and Mortgage Agents to deal inmortgages on its behalf.

Mortgage Broker

A Mortgage Broker is a person who:
. Carries out mortgage activities for the Mortgage Brokerage.
. Brings together borrowers who need mortgage loans. and companies and/or individuals with money to lend (as the Mortgage Brokerage's
. Negotiates on behalf of the borrower to get the best possible financing deal from the lender (as the Mortgage Brokerage's representative). However, a Mortgage Broker does not administer the mortgage.

. May be responsible for supervising the activities of Mortgage Agents.

However, you will need to be licensed if you are:

. providing your clients referrals that provide more than the limited information that is allowed by Ontario Regulation 407/07 (exemptions from the requirements to be licenced),

. assessing your clients on behalf of a potential lender, or
. otherwise dealing or trading in mortgages.
Under the Mortgage Brokerages, Lenders and Administrators Act, 2006, real estate sales representatives are not exempt from the Mortgage
Agent education requirements. To qualify for a Mortgage Agent licence, an approved education course must be taken.

If you are a Mortgage Agent for a business that is registered under the current Mortgage Brokers Act. you may be able to qualify for certain transitional provisions applicable to existing Mortgage Agents.

Mortgage Administrator

A Mortgage Administrator is a business that:
. Receives mortgage payments from borrowers and sends them to investors.
. Takes steps on behalf of investors to enforce payments under mortgages.
. Is not required to appoint a Principal Broker, and its employees are not required to be licensed.

Mortgage Agent

A Mortgage Agent is an individual who carries out mortgage activities for the Mortgage Brokerage, under the supervision of a licensed Mortgage Broker. In addition, a Mortgage Agent can only work for one Mortgage Brokerage.

So, what is your plan with this information and what is your next step in the real estate process?

Mississauga Real Estate Market Professional

Overall average prices.

So, if you are thinking of selling and buying a homes this year, should you buy or sell first?  I've had many clients purchase before they sell.  I just want you to have all the information so you can make the best decision for yourself and your family.  You may read more about buying or selling first here

Read about what happened in real estate last month.

I wish you much success, good health and happiness today and always! 

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