O. Reg. 391/22: MORTGAGE BROKERS AND AGENTS: LICENSING
filed April 20, 2022 under Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29
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made under the
Mortgage Brokerages, Lenders and Administrators Act, 2006
Made: April 14, 2022
Filed: April 20, 2022
Published on e-Laws: April 20, 2022
Printed in The Ontario Gazette: May 7, 2022
Amending O. Reg. 409/07
(MORTGAGE BROKERS AND AGENTS: LICENSING)
1. (1) Section 1 of Ontario Regulation 409/07 is amended by adding the following definitions:
“annual licensing cycle” means the one-year period that begins on April 1 in a year and ends on March 31 in the following year; (“période de validité des permis”)
“prescribed education requirements for a Mortgage Agent Level 1 licence” means the requirement described in paragraph 5 of subsection 5.0.1 (1); (“exigences prescrites en matière de formation pour un permis d’agent en hypothèques de niveau 1”)
“prescribed education and experience requirements for a Mortgage Agent Level 2 licence” means the requirements described in paragraphs 5 to 7 of subsection 5.0.2 (1). (“exigences prescrites en matière de formation et d’expérience pour un permis d’agent en hypothèques de niveau 2”)
(2) The definition of “prescribed education requirements for an agent’s licence” in section 1 of the Regulation is revoked.
2. (1) Paragraphs 5 and 6 of subsection 2 (1) of the Regulation are revoked and the following substituted:
5. The individual has successfully completed the approved education programs for a Mortgage Agent Level 1 licence and a Mortgage Agent Level 2 licence.
6. The individual has been licensed as a Mortgage Agent Level 2 for at least 24 of the 36 months immediately before the individual applies for the licence.
(2) Section 2 of the Regulation is amended by adding the following subsection:
(3) The following rules apply with respect to the annual licensing cycles that begin on April 1, 2023 and April 1, 2024:
1. Despite paragraph 5 of subsection (1), an individual who was licensed as a mortgage broker on March 31, 2023 may be issued a mortgage broker’s licence for the annual licensing cycle that begins on April 1, 2023 even if the individual has not successfully completed the approved education programs described in that paragraph.
2. If an individual described in paragraph 1 does not successfully complete the approved education programs described in paragraph 5 of subsection (1) on or before March 31, 2024, the individual is not eligible to be issued a mortgage broker’s licence for the annual licensing cycle that begins on April 1, 2024 but is eligible to be issued a Mortgage Agent Level 1 licence for that annual licensing cycle if the requirements in section 5.0.1 are satisfied.
3. Paragraph 6 of subsection (1) does not apply. Instead, the individual must have been licensed as a mortgage agent under this Regulation as it read on March 31, 2023 or as a Mortgage Agent Level 2 for at least 24 of the 36 months immediately before the individual applies for the licence in the applicable annual licensing cycle.
4. For greater certainty, the requirement set out in paragraph 3 may be satisfied by a combination of months licensed as a mortgage agent under this Regulation as it read on March 31, 2023 and months licensed as a Mortgage Agent Level 2.
3. Section 3 of the Regulation is revoked and the following substituted:
Partial exemption, reinstatement of previous licensee
3. (1) This section applies in circumstances in which an individual wishes to have their licence as a mortgage broker reinstated after a period of the licence being inactive.
(2) An individual is exempted from the prescribed education and experience requirements for a broker’s licence if the individual was licensed as a mortgage broker at any time during the 24 months before applying for the licence.
(3) Subsection (2) does not apply if the individual was required, as a condition of the prior licence, to successfully complete an education program by a specified date and the individual did not do so.
(4) The following rules apply with respect to the annual licensing cycle that begins on April 1, 2024:
1. Subsection (2) does not apply if the individual has not successfully completed the approved education program for a Mortgage Agent Level 2 licence on or before March 31, 2024.
2. If the individual has not successfully completed the approved education program for a Mortgage Agent Level 2 licence on or before March 31, 2024, the individual is not eligible to have their licence as a mortgage broker reinstated for the annual licensing cycle that begins on April 1, 2024 but is eligible to be issued a Mortgage Agent Level 1 licence in that annual licensing cycle if the requirements in paragraphs 1 to 4 of subsection 5.0.1 (1) are satisfied.
4. Section 5 of the Regulation is revoked and the following substituted:
Mortgage agent’s licence
5. The following classes of mortgage agent’s licence are established:
1. Mortgage Agent Level 1.
2. Mortgage Agent Level 2.
Mortgage Agent Level 1
5.0.1 (1) A Mortgage Agent Level 1 licence may be issued under subsection 14 (1) of the Act to an individual who satisfies the following requirements:
1. The individual is at least 18 years old.
2. The individual is a resident of Canada.
3. The individual has a mailing address in Ontario that is not a post office box and that is suitable to permit service by registered mail.
4. The individual is authorized by a brokerage to deal or trade in mortgages on its behalf.
5. The individual has successfully completed the approved education program for a Mortgage Agent Level 1 licence within two years before the individual applies for the licence.
(2) An individual is deemed to have satisfied the prescribed education requirements for a Mortgage Agent Level 1 licence if the Chief Executive Officer is satisfied that the individual has a combination of education and experience that is equivalent to those requirements.
(3) A Mortgage Agent Level 1 licence permits the licence holder to do the following:
1. The licence holder may deal or trade in mortgages exclusively with lenders that are financial institutions or that are approved lenders under the National Housing Act (Canada).
2. In the case of a licence holder who is authorized to deal in mortgages on behalf of a brokerage that is a finance company, the licence holder may deal or trade in mortgages for the brokerage if the brokerage is the lender or is an affiliate of the lender.
(4) For the purposes of paragraph 2 of subsection (3), “affiliate” and “finance company” have the same meaning as in section 7.
(5) The following rule applies with respect to the annual licensing cycle that begins on April 1, 2023:
1. Despite paragraph 5 of subsection (1), an individual who, on March 31, 2023, was licensed as a mortgage agent under this Regulation as it read on that date may be issued a Mortgage Agent Level 1 licence for the annual licensing cycle that begins on April 1, 2023 even if the individual has not successfully completed the approved education program for a Mortgage Agent Level 1 licence.
Mortgage Agent Level 2
5.0.2 (1) A Mortgage Agent Level 2 licence may be issued under subsection 14 (1) of the Act to an individual who satisfies the following requirements:
1. The individual is at least 18 years old.
2. The individual is a resident of Canada.
3. The individual has a mailing address in Ontario that is not a post office box and that is suitable to permit service by registered mail.
4. The individual is authorized by a brokerage to deal or trade in mortgages on its behalf.
5. The individual has successfully completed the approved education program for a Mortgage Agent Level 1 licence.
6. Within two years before the individual applies for the licence, the individual has successfully completed the approved education program for a Mortgage Agent Level 2 licence.
7. The individual has been licensed as a Mortgage Agent Level 1 for at least 12 of the 24 months immediately before the individual applies for the licence.
(2) An individual is deemed to have satisfied the prescribed education and experience requirements for a Mortgage Agent Level 2 licence if the Chief Executive Officer is satisfied that the individual has a combination of education and experience that is equivalent to those requirements.
(3) A Mortgage Agent Level 2 licence permits the licence holder to deal or trade in mortgages with mortgage lenders.
(4) The following rules apply with respect to the annual licensing cycle that begins on April 1, 2023:
1. Despite paragraph 6 of subsection (1), an individual who was licensed as a mortgage agent immediately before applying for a Mortgage Agent Level 2 licence may be issued a Mortgage Agent Level 2 licence for the annual licensing cycle that begins on April 1, 2023 even if the individual has not successfully completed the approved education program for a Mortgage Agent Level 2 licence.
2. If an individual described in paragraph 1 does not successfully complete the approved education program for a Mortgage Agent Level 2 licence on or before March 31, 2024, the individual is not eligible to be issued a Mortgage Agent Level 2 licence in the annual licensing cycle that begins on April 1, 2024 but is eligible to be issued a Mortgage Agent Level 1 licence for that annual licensing cycle if the requirements in section 5.0.1 are satisfied.
(5) The following rules apply with respect to the annual licensing cycles that begin on April 1, 2023 and April 1, 2024:
1. Paragraph 7 of subsection (1) does not apply. Instead, the individual must have been licensed as a mortgage agent under this Regulation as it read on March 31, 2023 or as a Mortgage Agent Level 1 for at least 12 of the 24 months immediately before the individual applies for the licence in the applicable annual licensing cycle.
2. For greater certainty, the requirement set out in paragraph 1 may be satisfied by a combination of months licensed as a mortgage agent under this Regulation as it read on March 31, 2023 and months licensed as a Mortgage Agent Level 1.
5. Section 6 of the Regulation is revoked and the following substituted:
Partial exemption, reinstatement of previous licensee
6. (1) This section applies in circumstances in which an individual wishes to have their licence as a mortgage agent reinstated after a period of the licence being inactive.
(2) An individual is exempted from the prescribed education requirements for a Mortgage Agent Level 1 licence if, at any time during the 24 months before applying for the licence, the individual was licensed as,
(a) a mortgage agent under this Regulation as it read on March 31, 2023; or
(b) a Mortgage Agent Level 1.
(3) An individual is exempted from the prescribed education and experience requirements for a Mortgage Agent Level 2 licence if, at any time during the 24 months before applying for the licence,
(a) the individual was licensed as a mortgage agent under this Regulation as it read on March 31, 2023 and successfully completed the approved education program for a Mortgage Agent Level 2 licence; or
(b) the individual was licensed as a Mortgage Agent Level 2 and successfully completed the approved education program for a Mortgage Agent Level 2 licence.
(4) Subsections (2) and (3) do not apply if the individual was required, as a condition of the prior licence, to successfully complete an education program by a specified date and the individual did not do so.
6. (1) Subsection 7 (1) of the Regulation is amended by striking out “for an agent’s licence” in the portion before paragraph 1 and substituting “for a Mortgage Agent Level 1 licence”.
(2) Paragraph 3 of subsection 7 (1) of the Regulation is amended by striking out “an approved education program for mortgage agents” and substituting “the approved education program for a Mortgage Agent Level 1 licence”.
7. Subsections 8.1 (1) and (3) of the Regulation are revoked.
Commencement
8. This Regulation comes into force on the later of April 1, 2023 and the day this Regulation is filed.