Do Mortgage Brokerages need to meet any new business requirements on July 1, 2008?
Starting July 1, 2008, each Mortgage Brokerage is required to: • Supervise its Mortgage Brokers and Agents (who will only be able to work for one Mortgage Brokerage); • Screen newly hired Mortgage Brokers and Agents for suitability; • Notify FSCO if it believes a Mortgage Broker or Agent is not suitable for licensing; • Provide its name and licence number upon request; • Maintain errors and omissions insurance which includes coverage for fraud; • Provide a written response to a written complaint, and advise individuals/businesses that they may refer their complaints to FSCO; • Not act in a mortgage that it believes is unlawful; • Advise the lender if it doubts the borrower’s legal authority or the accuracy of the mortgage application; and • Return documents to their owners at no charge.
