Brokerage Annual Information Return for 2014 Mortgage Brokerages, Lenders and Administrators Act, 2006

Transcription

1 Financial Services Commission of Ontario 5160 Yonge Street Box 85 Toronto ON M2N 6L9 Brokerage Annual Information Return for 2014 Mortgage Brokerages, Lenders and Administrators Act, 2006 General Information Legal Name of Brokerage: Licence number Other authorized name: Business type Principal broker: Licence : Principal place of business address Street address Apt./Unit City Province Postal code Mailing address (check if same as above) Street address Apt./Unit City Province Postal code Phone number Ext. Fax Principal broker ( ) ( ) NOTE: If any of the above information has changed, please notify the Financial Services Commission of Ontario (FSCO) by at contactcentre@fsco.gov.on.ca. THE ANNUAL INFORMATION RETURN AND ALL OF ITS QUESTIONS PERTAIN TO THE PERIOD COVERING JANUARY 1 TO DECEMBER 31, UNLESS OTHERWISE STATED, THE RETURN IS DUE NO LATER THAN MARCH 31, REMINDER: The brokerage must file if it was licensed in Ontario anytime between January 1, 2014 and December 31, 2014 whether or not it conducted business. If you are a franchisor, do not report for your franchisees. Page 1 of 14

2 Brokerage Information a. E&O Insurance provider: AEGIS (Lloyd s of London) AIG Insurance Company of Canada Chubb Insurance Company of Canada CUMIS General Insurance Company Encon Insurance Managers Inc. Intact Insurance Company (Western Division) International Insurance Company of Hannover Ltd. (A.M. Fredericks Underwriting Management Ltd.) Liberty Mutual Insurance Company (Liberty International Underwriters) a. (i) Was your E&O insurance obtained through the membership of the following industry associations? CAAMP IMBA N/A a. (ii) Please indicate the liability limits under your current E&O Policy. Per Occurrence Per Annual Aggregate $500,000 $1,000,000 $1,000,000 $2,000,000 Other Please Specify Amount: Other Please Specify Amount: b. Policy number c. Expiry date Lloyd s of London - Lloyd s Underwriters Royal & Sun Alliance Insurance Company of Canada Sovereign General Insurance Company, The Other d. Is your brokerage a franchise? e. If yes, name of the franchisor: f. If the brokerage has an administrator licence, enter the administrator licence number here: g. Which of the following MBLAA business activities was your brokerage engaged in, in Ontario, during the reporting period? Dealing in Mortgages Trading in Mortgages Mortgage Lending ne of the above NOTE: For a definition of dealing, trading or lending in mortgages, refer to MBLAA, s. 2 (1), s. 3 (1) and s. 4 (1). g. (i) If none of the above, what was your brokerage s primary line of business? Accounting Advisory Services/Consulting Administering Mortgages Construction Legal Services Mortgage Referrals Real Estate Other: h. Is the brokerage or its affiliate a member of The Mutual Fund Dealers Association of Canada (MFDA)? j. Is the brokerage or its affiliate registered as an insurance brokerage under insurance legislation in any Canadian jurisdiction? l. Is the brokerage or its affiliate registered as a dealer or adviser under securities regulation in any Canadian jurisdiction? n. Is the brokerage or its affiliate registered as a real estate brokerage under the Real Estate Business Brokerage Act? i. If yes, please indicate the MFDA membership number of the brokerage or its affiliate and the authorized name of the firm: k. If yes, please indicate the registration number of the brokerage or its affiliate, the authorized name of the firm and the category of registration: m. If yes, please indicate the registration number of the brokerage or its affiliate, the authorized name of the firm and the category of registration: o. If yes, please indicate the registration number of the brokerage or its affiliate, the authorized name of the firm and the category of registration: Page 2 of 14

3 Trust Account Information (The purpose of these questions is to verify compliance with legal obligations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 [MBLAA]) 1. Did the brokerage have a trust account(s) under the MBLAA? If yes: 1a) How many MBLAA trust accounts did the brokerage have as at Dec. 31st? 1b) Of the total number, how many MBLAA trust accounts were opened during the reporting period? (i) Did the brokerage obtain prior written consent from the Superintendent pursuant to O. Reg. 188/08, s. 50 (2)? (ii) If not, please explain why? 1c) Did the brokerage reconcile all of its MBLAA trust accounts? (i) If yes, how often did the brokerage reconcile the trust accounts? Monthly Quarterly Annually (ii) If not, please explain why? 2. Was there a shortfall, at any time, in any of the MBLAA trust accounts? t Applicable 2a) If yes, please complete the following: Date Amount Corrected When $ $ $ $ $ Reported to Superintendent Comment Other shortfalls: Supervision of Operations (The purpose of these questions is to determine whether the brokerage s operations are organized in a way that facilitates supervision and to facilitate examination/inspection planning by FSCO.) 3. Where was the brokerage s head office/headquarters in Canada as at Dec. 31st? 3a) If the brokerage s head office/headquarters was located in Ontario, please provide the region: Toronto (M) Central Ontario (excluding Toronto) (L) Eastern Ontario (K) rthern Ontario (P) Southwestern Ontario (N) *L or M, N, K, P is the first letter of the postal code for each region respectively. Page 3 of 14

4 4. Provide the following information about the brokerage s offices for each Ontario region as at Dec. 31 st, as applicable: Ontario Region of Offices. of Offices with Broker** 1. Toronto (M) 2. Central Ontario (excluding Toronto) (L) 3. Eastern Ontario (K) 4. rthern Ontario (P) 5. Southwestern Ontario (N) Total of Offices Auto Auto ** Licensed broker assigned to office in a supervisory capacity 4a) List top five locations by the number of offices for each Ontario region, as applicable: Central Ontario Region (including Toronto) City/Town (i) of Offices (ii) Eastern Ontario Region City/Town of Offices rthern Ontario Region City/Town of Offices Southwestern Ontario Region City/Town of Offices 5. How many offices in Ontario did the brokerage have that were open to the public as at Dec. 31st? NOTE: For the purpose of the AIR, "open to the public" is defined as: "A place of business accessible by the general public or where the public is invited to come during business hours." 6. Of the offices open to the public in Ontario, how many were more than 100 km away from the Principal Broker s primary location of work? 7. Please select all applicable steps (as described in your Policies and Procedures) taken by the brokerage during the reporting period to provide adequate supervision for all offices in Ontario where business was transacted: Onsite Supervisor/Manager File Review/File Audits Regular Meetings (monthly, quarterly etc.) Policies and Procedures/Best Practices Training/Support (phone/ /fax/online) Other 7a) If "Other" is selected, please explain: 8. Did your brokerage deal or trade in mortgages in other Canadian provinces/territories? 8a) What percentage of mortgage business, approximately, was conducted in each province/territory, as applicable? Canadian Province/Territory % of Mortgages Alberta British Columbia % of $ Mortgages Page 4 of 14

5 Manitoba New Brunswick Newfoundland & Labrador va Scotia rthwest Territories Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Total Auto Auto 9. If the brokerage's head office/headquarters was in Ontario: How many offices did the brokerage have in Canada, outside of Ontario, as at Dec. 31st? Canadian Province/Territory of Offices Alberta British Columbia Manitoba New Brunswick Newfoundland & Labrador va Scotia rthwest Territories Nunavut Prince Edward Island Quebec Saskatchewan Yukon Total Auto NOTE: For the purpose of the AIR, "office" is defined as: "A place of business where a broker or agent spends more than 50% of his or her time working on mortgage brokering, including home offices." 10. Please provide the following information about the number of brokers and agents registered by the brokerage in Ontario as at Dec. 31st: of brokers of agents of other staff Total 10a) How many brokers/agents left the brokerage in the reporting period (resigned/terminated)? 10b) During the reporting period, did the brokerage terminate a broker/agent for cause? If yes: 10c) Did you report the matter to FSCO through Licensing Link? 10d) Did you report all cases to FSCO pursuant to O. Reg. 188/08, s. 43 (3)? (i) If not, please explain why? 11. Did you review the brokerage's Policies and Procedures pursuant to O. Reg. 410/07, s. 3 (1) during the reporting period? 11a) When were they last updated? Auto Page 5 of 14

6 Records Information (The purpose of these questions is to facilitate examination/inspection/planning.) 12. What format were your required records stored in? (please check one or both options, as applicable) Electronic Paper 12a) Were the required records retained at the brokerage's principal place of business in Ontario? If not: 12b) Was the Superintendent notified pursuant to O. Reg. 193/08, s.5? 12b) i) If not, please explain: 12c) What is the retrieval lead time required to access your files? Electronic Records Same day Paper Records Same day 1-3 days 1-3 days Over 3 days Over 3 days 13. Has your brokerage taken adequate precautions to ensure the security of your records? 13a) Please explain: Portfolio Details/Information (The purpose of these questions is to gather marketplace statistics) 14. Did the brokerage close any mortgage deals during the reporting period? 14a) If yes, please provide the total number () and dollar value ($) of mortgages brokered and closed by the brokerage : 14a) i) Total of mortgages 14a) ii) Total $ value of mortgages Page 6 of 14

7 14b) Provide the and $ value for the following types of mortgages: Mortgage Type (14b/i) of Mortgages (14b/ii) $ of Mortgages a) Residential NOTE: Please enter whole numbers for b) Commercial all amounts. Dollar sign ($), comma (,) and decimal point (.) are not accepted. c) Other c) (i) Please specify the types of mortgages included under Other : TOTAL (a+b+c) Auto Auto d) Conventional 1 e) High Ratio 2 TOTAL (d+e) f) First Mortgage g) Second Mortgage h) Third Mortgage i) Other Mortgages (4 th, 5 th, etc.) TOTAL (f+g+h+i) j) New Loans k) Renewals 3 TOTAL (j+k) l) First Time Homebuyers m) Reverse n) Sub-Prime 4 o) Construction Mortgages p) Home Equity Line of Credit (HELOC) 1 Conventional: Loan to Value Ratio less than or equal to 80% 2 High Ratio: Loan to Value Ratio greater than 80% and insured with mortgage default insurance. 3 Renewals: Mortgages that were originally placed by the brokerage. 4 Sub-Prime: For the purposes of this return, sub-prime business shall mean arranging a mortgage for individual(s) with a credit score of 600 points or less (or a reasonable equivalent). It is based on the credit worthiness of the individual borrower(s). 15. Please provide the following information regarding the brokerage s business funded by these lenders: Bank Credit Union (15/a) Type of Lender Mortgage Investment Corporation Private Lender Self-Funding Trust Company Other (15/b) Mortgages (15/c) $ Mortgages Total Auto Auto 15d) How many lenders did the brokerage have available to fund mortgages including the brokerage itself as at Dec. 31 st? Page 7 of 14

8 16. Did the brokerage fund more than 50% of its business, in dollar value, with any one lender including the brokerage itself? 16a) If yes, what category did the lender belong to? Type of Lender Bank Credit Union Mortgage Investment Corporation Private Lender Self-Funding Trust Company Other Name Text Text Text Text Auto Text 17. Did the brokerage buy, sell or exchange mortgages during this period? 17a) on behalf of another person or entity? 17b) on the brokerage s own behalf? of Mortgages $ of Mortgages of Mortgages $ of Mortgages 18. If engaged in mortgage lending activities, please provide the total number and dollar value of mortgages funded by the brokerage during the reporting period: of Mortgages $ of Mortgages Mortgage Investment Corporation (MIC) Questions 19 to 21 are intended for information gathering purposes only, and not for compliance purposes. NOTE: For the purpose of the AIR, a Mortgage Investment Corporation (MIC) is an investment/lending company designed specifically for mortgage investing or lending, in Canada, and governed by the Income Tax Act. The MIC is organized for investing in pools of mortgages, primarily residential, and manages a diversified and secured portfolio of mortgages. Profits generated by the MIC are distributed to its shareholders according to their proportionate share. 19. Did the principal broker, officers or directors of the brokerage have any equity interest in a Mortgage Investment Corporation (MIC) as at Dec. 31st? 19a) If yes, list all applicable names, their corresponding equity interest, and the legal name of any MIC they have an equity interest in: 20. Did the principal broker, officers or directors of the brokerage hold any management roles in a MIC as at Dec. 31st? If yes: 20a) List all the names, positions and the legal name of any MIC registered under any securities act of any jurisdiction: Page 8 of 14

9 20b) Was any of the MICs fully managed by the principal broker? 20c) Was the MIC(s) subject to any legal claims, in any Canadian jurisdiction? 20c) i) If yes, please provide details: 21. Please provide the amount of brokerage s business that was funded by a MIC(s) during the reporting period? Mortgages $ Mortgages MIC(s) funded these mortgages Syndication (The purpose of these questions is to verify compliance with legal obligations under the MBLAA and to gather marketplace statistics.) 22. Did the brokerage fund any private mortgages? 22a) If yes, please complete the following: of mortgages $ of mortgages of private lenders 22b) Based on the value of mortgages, please list the top three (3) private lenders that funded the brokerage s mortgage transactions: Name Mortgages $ Mortgages 23. Did the brokerage syndicate mortgages (brokered or co-brokered)? 23a) If, please provide the following: Type of Mortgage Response Total of Mortgages Total $ of Mortgages Total of Investors Designated Investors (O. Reg. 188/08, s.2) as a Proportion of Total Investors Who administers the mortgages? How many of the total syndications are high ratio, and what's their dollar value? of Mortgages $ of Mortgages Residential / Commercial / Other / 23b) How many syndicates/lenders did the brokerage syndicate mortgages? Page 9 of 14

10 23c) How many investors did the brokerage have available for syndicated mortgages as of Dec. 31 st? 23d) Based on the value of mortgages, please list the top three (3) syndicates/lenders that funded the brokerage s syndicated mortgage transactions: Name Mortgages $ Mortgages 24. Did the brokerage refer any clients to other licensed brokerages to invest in syndicated mortgages? If yes: 24a) How many clients did the brokerage refer? 24b) Please provide the $ amount of compensation received by the brokerage for referring clients to invest in syndicated mortgages. Securitization 25. Did the brokerage arrange or participate in arranging any securitization facilities? 25a) If yes, please complete the following: of Instruments $ of Instruments 26. Did the brokerage make securitization sales? 26a) If yes, please complete the following: of Mortgages $ of Mortgages NOTE: Securitization in questions 25 and 26 means providing mortgages for, or otherwise arranging pools of mortgages in connection with, the creation of mortgage-backed securities. Complaints and Complaint Handling 27. Is the person designated to receive complaints at the brokerage the principal broker? 27a) If no, name of person designated to receive complaints for the brokerage: Page 10 of 14

11 28. Total number of written complaints received by the brokerage during the reporting period: 28a) Of the total written complaints received, how many were responded to, as required by legislation? NOTE: The brokerage must respond, in writing, to all written complaints that are received. 28b) Of the total written complaints received, how many were resolved as at Dec. 31st? NOTE: For the purpose of the AIR, resolved means that the brokerage has addressed and responded in writing to all concerns raised by the complainant. 28c) Please provide the following breakdown for the complaints received: Complaint Category 1. Administration Complaints regarding administrative practices e.g., failing to return original records, record-keeping, payment schedule problems, contractual disputes (client fees or services) and customer service (client expectations). of Complaints Comments (Provide a brief explanation about the types of complaints received by the brokerage for each category) 2. Disclosure Complaints regarding disclosure requirements e.g., disclosure of potential conflicts of interest, material risks, or fees as it relates to the mortgage transaction, improper release of personal information. 3. Marketing & Sales Complaints regarding product suitability, incomplete, inappropriate or misleading public relations material, high pressure sales tactics, tied selling. 4. Fraud Complaints regarding deceptive or deliberate practices to secure unfair or unlawful gain, e.g., falsifying documents or information related to a mortgage transaction or arrangement, defalcation. Total Auto Suitability 29. Were any E&O claims made against the brokerage or the brokerage's brokers/agents, in any Canadian jurisdiction, during the reporting period? If yes: 29a) How many claims were made? 29b) Provide a brief explanation for each claim: 30. Were any claims against the brokerage paid by its E&O insurance carrier or bonding company, in any Canadian jurisdiction, during the reporting period? If yes: 30a) How many claims were paid out? 30b) Provide a brief explanation for each claim: 31. Were any claims against the brokerage's brokers or agents paid by its E&O insurance carrier or bonding company, in any Canadian jurisdiction, during the reporting period? Page 11 of 14

12 If yes: 31a) How many claims were paid out? 31b) Provide a brief explanation for each claim: 32. During the reporting period, was a complaint made against the brokerage to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, in allegations of fraud, theft, deceit, misrepresentation, forgery, or similar conduct? 32a) If yes, provide a brief explanation: 33. During the reporting period, was the brokerage fined or were any monetary penalties imposed by any Canadian financial services regulator excluding FSCO? 33a) If yes, provide a brief explanation: 34. During the reporting period, did the brokerage have any unpaid fines/monetary penalties owing to any Canadian financial services regulator? 34a) If yes, provide a brief explanation: 35. During the reporting period, was the brokerage fined or were any monetary penalties imposed by any Provincial/Federal courts? 35a) If yes, provide a brief explanation: 36. During the reporting period, was the brokerage subject to any charges laid under the laws of any Canadian province/territory? 36a) If yes, provide a brief explanation: 37. During the reporting period, were any licences the brokerage held from a regulatory body/professional organization revoked or suspended? 37a) If yes, provide a brief explanation: Reporting Changes 38. Did the brokerage open any offices during the reporting period? 38a) If yes, how many offices were opened? 38b) How many of the total offices opened by the brokerage were open to the public? Page 12 of 14

13 39. Did the brokerage close any offices during the reporting period? 39a) If yes, how many offices were closed? 39b) How many of the total offices closed by the brokerage were open to the public? 40. Did any of the following information change during the reporting period, and did you report the changes to FSCO by at Brokerage Information Changed? Reported? Address for Service Address of Principal Place of Business , Phone or Fax Officers or Directors Partners in Partnership E&O Insurance Remuneration 41. Did your brokerage accept non-monetary incentives from lenders? If yes: 41a) What kind of incentives? Points Trips Gifts Event Tickets Memberships Other 41b) From how many lenders did the brokerage accept non-monetary incentives? 42. Did your brokerage offer credits cards or gifts cards as remuneration including incentives? 42a) If yes, please explain: 43. Did your brokerage have contingency commission (i.e. volume bonus) or payment arrangements with lenders? 43a) If yes, with how many lenders did the brokerage have arrangements? 44. Did your brokerage have tri-party compensation agreements for payments of incentives other than money, between your brokerage, brokers/agents, and other brokerages? 44a) If yes, please explain: 45. How many agents or brokers are remunerated through a personal corporation? Page 13 of 14

14 Attestation by the Principal Broker I, of Print name Brokerage CERTIFY THAT: I am aware that it is an offence to make a false statement to the Superintendent under the Mortgage Brokerages, Lenders and Administrators Act, 2006, and that the information provided in this Annual Information Return is true to the best of my knowledge and belief. NOTE: Only the principal broker of the brokerage can submit this Annual Information Return. The above name must match the name on the principal broker's licence. REMINDER: Before submitting this return, please make sure that you have thoroughly reviewed all answers for accuracy. Once the AIR is submitted, no changes can be made. Page 14 of 14