made under the
MORTGAGE BROKERAGES, MORTGAGE LENDERS
AND MORTGAGE ADMINISTRATORS ACT
A CONSULTATION DRAFT
MORTGAGE ADMINISTRATORS. THE LICENSING PROCESS
REQUIREMENTS FOR A MORTGAGE ADMINISTRATOR'S LICENCE
- A corporation is eligible to have a mortgage administrator's licence if all of the following requirements are satisfied:
- It must be incorporated under an Act of any jurisdiction in Canada.
- It must have a mailing address in Ontario that is suitable to permit service by registered mail.
- It must have errors and omissions insurance in a form approved by the Superintendent with extended coverage for loss resulting from fraudulent acts or it must have some other form of financial guarantee in a form approved by the Superintendent for such losses. The insurance or guarantee must be sufficient to pay a minimum of $500,000 per claim and $1 million for all claims made in any policy year against the corporation.
- It must have an irrevocable line of credit with a financial institution, unencumbered assets or some other form of financial guarantee
in a form approved by the Superintendent, in an amount equal to the corporation's operating costs for three months as determined from the corporation's most recent audited financial statements or by such other means approved by the Superintendent.
- Having regard to its financial position, the corporation cannot reasonably be expected to be financially responsible in the conduct of its business.