Mortgage Compliance Checklist Template - Free Download
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Compliance Checklist for
Mortgage Brokerages, Brokers & Agents
as of January 1, 2009
Compliance Checklist for Mortgage Brokerages, Brokers & Agents as of January 1, 2009
(Last Updated 11/2008)
This Compliance Checklist was developed by the Financial Services Commission of Ontario (FSCO) to assist Mortgage Brokerages,
Brokers and Agents in complying with the new regulations relating to standards of practice (Ontario Regulations 187/08 and 188/08)
and reporting requirements (Ontario Regulation 193/08) under the Mortgage Brokerages, Lenders and Administrators Act, 2006. All of
these requirements are set out in the law — they are not suggestions.
Ensure the mortgage product presented is suitable for your customer. Consider the needs and circumstances of the
borrower, lender or investor to ensure that any mortgage or mortgage investment presented is suitable for your
customer. This requirement does not apply if the customer is another Mortgage Brokerage or nancial institution.
If asked, provide the name in which you are licensed along with your Mortgage Brokerage/Broker/Agent
Prominently disclose the Mortgage Brokerage’s authorized name and licence number in all public relations
materials. If the name of a Mortgage Broker or Agent is included, use the name in which he/she is licensed and the title
“Mortgage Broker”, “Broker”, “Mortgage Agent” or “Agent.”
If the Mortgage Brokerage is a franchise, clearly indicate that it is independently owned and operated. The public
relations materials must clearly indicate that the company is independently owned and operated if the Mortgage
Brokerage’s authorized name is the name of a franchise, or includes the name of a franchise.
Disclose the role in which the Mortgage Brokerage is acting.
• Disclose in writing to the borrower or lender whether the Mortgage Brokerage is acting for the lender, the
borrower, or both the borrower and the lender without preference to the interests of either.
• This requirement does not apply when the Mortgage Brokerage is the lender.
• Disclosure must be in plain language that is clear and concise. It should not include false, misleading or deceptive
Use plain language and be clear, brief and logical in written disclosures, consents and acknowledgements.
Issue a receipt upon receiving trust funds. Indicate the amount that was received, the date, the name of the individual/
business that provided the funds, the purpose of the funds, the Mortgage Brokerage’s terms for holding the funds,
and the name of the Mortgage Broker/Agent who received the funds.
Return original documents to their owners when requested, at no charge.
Provide a written response to a written complaint. Tell the client that he/she may contact FSCO if he/she is not satised
with your response and believes the law has not been followed.
Disclose in writing to the borrower the number of lenders on whose behalf the Mortgage Brokerage acted during the previous
scalyearandwhethertheBrokerageitselfwasalender.Upon request, disclose in writing the name of the lender, if
any, with whom the Brokerage arranged more than 50 per cent of the total number of mortgages and mortgage renewals
during the previous scal year. Or whether the Mortgage Brokerage itself was the lender of more than 50 per cent of the
total number of mortgages and mortgage renewals.