WBK Industry News - State Regulatory Developments

Ontario FSRA Adopts New Mortgage Agent and Broker License Requirements

The Financial Services Regulatory Authority of Ontario (FSRA) is implementing new guidance for mortgage agents and mortgage brokers, including new licensing requirements and new continuing education requirements.  The new requirements are effective April 1, 2023.

The new licensing provisions establish a separate license (at two levels) for mortgage agents, as well as a mortgage broker license.  Under the new requirements, a level 1 mortgage agent will be authorized to deal and trade in mortgages with lenders that are financial institutions (as defined in the Mortgage Brokerages, Lenders and Administrators Act, 2006) or are approved by the Canada Mortgage and Housing Corporation under the National Housing Act.  A level 2 mortgage agent will be authorized to deal and trade with the same mortgage lenders authorized under a level 1 license, as well as all other mortgage lenderssuch as mortgage investment companies, syndicates, private individuals, agents, brokers, and brokerages.  A mortgage broker license will authorize licensees to deal and trade with the same types of mortgage lenders as level 2 mortgage agents and also authorize the licensee to supervise level 1 and level 2 mortgage agents.

New applicants and licensees completing renewals must meet the new education and experience requirements established under the guidance, including different courses and exam options depending on the license sought.  The guidance also includes milestones for transitions to the new licensing requirements.