Provincial Mortgage Regulations
- Mortgage fraud leaves homeowners with large expenses and at risk of losing their homes.House image by Gon?¡ìalo Carreira from Fotolia.com
Mortgage fraud is a significant problem in the provinces of Canada. Independent mortgage brokers who bend the rules to their benefit are the main cause of the problem. As a result, Canada has implemented mortgage regulations that mortgage brokers must follow or face the potential of being accused of criminal activity. These provincial mortgage regulations provide the Canadian government with the means to monitor the activity of mortgage brokers in the country and provide home buyers some protection against mortgage fraud. - All mortgage brokers who want to function in the provinces of Canada must apply for a license. This regulation does not apply to banks or credit unions as they are regulated under another set of regulations. To apply for a license, a mortgage broker must obtain an application from the Office of the Superintendent of Insurance and complete all portions of the form as well as pay the licensing fee as determined by the province. Failure to provide accurate information on the application will result in the application being denied and may prevent further applications from being reviewed.
- A mortgage broker must have a physical place of business in order to be able to obtain a license. The place of business may not be located in the mortgage broker applicant's house. The location of the address will be reviewed to determine if it is adequate from which to operate a mortgage broker business. If the address provided is found to not meet the needs of what a typical mortgage broker operation would require, the application may be denied on suspicion of the application being fraudulent. In the event that a licensed mortgage broker moves, he is required to notify the Office of the Superintendent of the move and the address of the new location.
- A mortgage broker may be required at anytime to provide the Office of the Superintendent with additional information. The mortgage broker is provided a reasonable amount of time to provide the requested information. If the mortgage broker fails to provide the information within the specified time frame, the Office of the Superintendent reserves the right to order a full audit of the mortgage brokers operation and files.
