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Tuesday, February 09, 2016
Saskatchewan Justice

The Mortgage Brokerages and Mortgage Administrators Act regulates the business of brokering or administering mortgages.

The Act establishes four categories of licences:

  • a mortgage brokerage licence for businesses that broker mortgages;
  • a mortgage broker licence for individuals who broker mortgages on behalf of mortgage brokerages and are qualified to supervise mortgage associates;
  • a mortgage associate licence for individuals who broker mortgages on behalf of a brokerage and are not involved in the supervision of other associates; and
  • a mortgage administrator licence for businesses that administer mortgages for investors.

There are some exemptions from the licensing requirement, including for banks, credit unions, certain insurance companies, certain trust and loan corporations, and provincial or federal Crown corporations.

The Act includes several consumer protection measures.  It:

  • provides that mortgage brokerages must appoint a principal broker to act as a compliance officer for the brokerage; 
  • establishes educational and proficiency requirements for mortgage brokers and mortgage associates;
  • creates standard disclosure requirements to help borrowers and private investors choose among the available mortgage loan or investment options;
  • establishes capital requirements and errors and omission insurance requirements for certain licensees;  
  • sets out the circumstances where a mortgage brokerage or mortgage administrator is required to act in the borrower's or private investor's best interests;  
  • establishes requirements for the handling of trust property by mortgage administrators and mortgage brokerages; and
  • addresses other market conduct practice issues, such as prohibiting unfair or deceptive practices, prohibiting the offering of guarantees in respect of mortgage investments, and restricting coercive tied-selling.

Administrative and civil remedies are available under the Act, including fines and the suspension or cancellation of a licence. The maximum fine for a contravention of the Act is $500,000 for an individual and $1,000,000 for a corporation.

Before this Act came into effect, mortgage lenders were regulated under The Mortgage Brokers Act.  Mortgage lenders are persons in the business of lending their own money and obtaining mortgages as security for the loans.  These lenders will now be regulated under The Trust and Loan Corporations Act, 1997

The Act is administrated by Superintendent of Financial Institutions.

For more information:

Superintendent of Insurance
Financial Institutions Division
Fiancial and Consumer Affairs Authority (FCAA)
Suite 601, 1919 Saskatchewan Drive
Regina, Saskatchewan S4P 4H2

Phone: (306) 787-6700
Fax: (306) 787-9006

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