DAVID FRANKLIN B.COMM.,JD

May 21, 2015

FSCO and MFDA Issue Joint Communication Concerning the Selling of Syndicated Mortgage Investments

​The Mutual Fund Dealers Association (MFDA) and FSCO have issued a joint communication concerning mutual fund dealers that have salespeople who are also licensed as mortgage brokers or mortgage agents, and are selling syndicated mortgage investments. For more information, please see Bulletin #O628-P ​, which was issued on January 21, 2015.

Businesses that Promote Syndicated Mortgage Investments are Required to be Licensed

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August 16, 2016

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Over the past year, the Financial Services Commission of Ontario (FSCO) has taken considerable action in the syndicated mortgage investment (SMI) marketplace to help consumers. While there are many legitimate SMI opportunities, FSCO warns consumers to be wary of SMIs with advertisements promoting a high return or ‘fully secured’ investment.

FSCO considers SMIs to be high risk, and notes they may not be suitable for the average investor. Before you hand over your hard-earned money, make sure you are aware of your rights and responsibilities.

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July 31, 2015

Compliance Checklists

The checklists below provide a summary of the requirements in the regulations relating to standards of practice and reporting requirements under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) in an easy-to-read format.

• Compliance Checklist for Mortgage Administrators​

• Compliance Checklist for Managing the Mortgage Brokerage, Keeping Records and Trust Accounts​

• Compliance Checklist for Mortgage Brokerages, Brokers and Agents​

• Compliance Checklist for Managing the Mortgage Administrator, Keeping Records and Trust Accounts​

Checklist on Detecting and Preventing Mortgage Fraud

Mortgage fraud is a growing problem that is estimated to cost hundreds of millions of dollars in Canada each year. To assist mortgage brokerages, administrators, brokers and agents in combating this issue, the Financial Services Commission of Ontario (FSCO) has developed a new Checklist on Detecting and Preventing Mortgage Fraud. HTML ​ PDF   ​

This checklist is based on industry best practices and the Standards of Practice regulations under the MBLAA. It was developed in consultation with industry stakeholders and is a helpful fraud prevention tool for Ontario’s mortgage brokering industry. Mortgage brokerages, administrators, brokers and agents are strongly encouraged to use this checklist in their day-to-day business.

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July 02, 2015

On July 1, 2015, the Financial Services Commission of Ontario (FSCO) replaced the Investor/Lender Disclosure Statement for Brokered Transactions with the following three new forms:

• Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions

• Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans

• Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period

Form 1 must be completed by a licensed mortgage broker on behalf of a mortgage brokerage, and be provided to prospective lenders or investors who are considering an investment in a mortgage. If a construction or development loan is involved, a mortgage broker must complete both Forms 1 and 1.1, and provide them to the potential lender or investor. Form 1.2 is optional and only needs to be completed if the lender or investor is waiving his/her right to the minimum two business day disclosure time, so that it can be reduced to one business day.

June 08, 2015

Questions About All Five New Forms

1. Why does FSCO have five new forms for providing disclosure information to investors and lenders who are interested in development and/or construction loans, including syndicated mortgages?

2. I currently use the Investor/Lender Disclosure Statement for Brokered Transactions.  Which of the three new forms (Forms 1, 1.1 and 1.2) should I use on July 1, 2015?

3. I currently use the Renewal Form. Which of the two new forms (Forms 2 and 2.1) should I use on July 1, 2015?

4. When do I need to start using the five new forms?

5. Do third party service providers have access to the five new forms?

6. Is my investment in a mortgage guaranteed by any government agency?

7. Are the new forms available on FSCO's website?

October 04, 2016

The Financial Services Commission of Ontario (FSCO) is committed to protecting consumers. FSCO takes this role seriously, and we will continue to take enforcement action against individuals and entities who contravene the law.
 
With this in mind, the Superintendent of Financial Services has issued a cease and desist order against Tier 1 Transaction Advisory Services Inc., and has suspended the licences  ​ of Tier 1 Mortgage Corporation, First Commonwealth Mortgage Corporation, Bhaktraj Singh, Jude Cassimy, and Dave Balkissoon for practices that contravene the Mortgage Brokerages, Lenders and Administrators Act, 2006  , arising in certain syndicated mortgage transactions.

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November 04, 2016

WThe Financial Services Commission of Ontario (FSCO) is issuing this bulletin to remind you of the amended regulations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) which came into force on January 1, 2016, which increased your responsibilities for preventing and detecting mortgage fraud. You have a critical and proactive role to play, and FSCO expects greater diligence in order to protect consumers at every stage of a mortgage transaction. Below is a summary and reminder of your obligations.hat's this item about? What makes it interesting? Write a catchy description to grab your audience's attention...

June 30, 2015

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 ​​​​​The Financial Services Commission of Ontario (FSCO) has noted that a number of mortgage brokerages have entered into arrangements with developers and promoters that want to attract investors for syndicated mortgage investments.

FSCO is cautioning mortgage brokerages that have such arrangements with unlicensed businesses that they may be exposing their brokerages to contraventions of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA).

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January 05, 2016

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Mortgage fraud is a growing problem that is estimated to cost hundreds of millions of dollars in Canada each year. In a continued effort to combat mortgage fraud and raise awareness of this important issue, the Government of Ontario made amendments to three existing regulations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA): 

• Ontario Regulation 187/08 – Mortgage Brokers and Agents: Standards of Practice 

• Ontario Regulation 188/08 – Mortgage Brokerages: Standards of Practice 

• Ontario Regulation 189/08 – Mortgage Administrators: Standards of Practice 

These changes were made in response to the Report to the Minister on the Five-Year Review of the MBLAA . The updated regulations came into effect on January 1, 2016. A summary of the changes that have been made to these standards of practice regulations are provided below. As of January 1, 2016, all mortgage brokerages, administrators, brokers and agents must be compliant with these regulations as amended.

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