March 31 marks the last day for Ontario agents to complete private mortgage course
The deadline for Ontario mortgage agents and brokers to renew their licence with the Financial Services Regulatory Authority (FSRA) is fast approaching – and with this year marking the conclusion of the transition to new licensing classes, the watchdog is urging agents who wish to transact in private mortgages to complete the mandatory course and exam by March 31.
The new classes, launched in April 2022, mean anyone dealing in private mortgages is required to complete that additional educational course to become a Level 2 agent, giving them the ability to deal and trade with an array of lender types including mortgage investment corporations, syndicates, and private individuals and entities as well as mainstream financial institutions.
As well as passing the mandatory continuing education course by March 31, Level 2 agents are required to pass the mandatory private mortgage course and ensure their principal broker submits the renewal application to FSRA by that date.
What repercussions could agents and brokers face for failing to complete the mandatory course and exam?
Jelena Pejic (pictured top), head, licensing and risk assessment at FSRA, told Canadian Mortgage Professional that around 6,500 agents across the province had yet to conclude the private course, as of March 11.
She emphasized the importance of completing the course – particularly given the consequences for those brokers who wish to continue transacting in private mortgages but fail to finish the program and sit the exam.
“The deadline to complete the course is embedded in law. When the new legislation and the new licensing classes were introduced, the regulation under the Mortgage Brokers, Lenders and Administrators Act was updated to reflect these new licensing classes along with the new education requirements,” Pejic told CMP.
“What the law says is [that] anybody who does not complete the course on time does get downgraded to the Level 1 licence – which means that they are restricted to only dealing in financial institutions and [National Housing Act]-approved lenders.”
It also means agents and brokers who get downgraded to that Level 1 licence after March 31 will be required to re-satisfy the experience and education requirements to retain the Level 2 licence and broker licence, she emphasized, meaning at least a year to get back to the Level 2 licence and at least three years to get back to the broker licence.
The clock is ticking for agents who have yet to register for the course, particularly as FSRA estimates it takes around a week to complete. “We really want to ensure that the industry is aware that if they haven’t already registered, [they should] register for the course and have it completed sooner rather than later,” Pejic said.
“The course takes a week, and then there’s an exam that needs to be passed. And if somebody does not pass the exam, we want to ensure that they have enough time to retake the exam, pass the exam, and still be able to also apply to renew their licence.”
That means mortgage professionals are “down to the wire” in the coming weeks to ensure that they remain compliant come April 1, with course providers including the Canadian Mortgage Brokers Association (CMBA), the Real Estate and Mortgage Institute of Canada (REMIC), and Mortgage Professionals Canada (MPC).
How can agents and brokers clarify queries around the process?
Pejic said agents and brokers with further queries should email [email protected], and highlighted the strong uptake of the new licensing classes across the province since their implementation in 2022.
“Since we launched these classes, we’ve seen last year quite a remarkable renewal turnout. It was one of our highest turnarounds for renewals, and we’re hoping to match that again this year,” she said.
“We really need the industry to turn their minds to getting these requirements completed on time. And if they have any questions or need any information, we do urge them to speak with their principal brokers. And of course, if any principal brokers have any questions, they can reach out to FSRA. And our teams are here and ready to support them through.”
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