Chapter 2: Mortgage Brokers Act
what is the mortgage brokers act? - ANS-provincial statutes that regulate the conduct of all
persons who deal with mortgages in BC
how is the Business Practices and Consumer Protection Act relevant to mortgage brokers? -
ANS-it contains provisions governing mortgage brokers conduct
what does section 3 of the act state? - ANS-Requires mortgage brokers and sub mortgage
brokers to be registered in the mortgage broker register which is maintained by the Register.
What is the purpose of the act? - ANS-To protect the public
what are the 3 key objectives of the act - ANS-to protect the public by a) ensuring all those that
offer mortgage broking services meet certain minimum reasonable competency requirements in
order to obtain registration. b) setting out certain standards to ensure that mortgage brokers and
submortage brokers conduct themselves appropriately in the course of their business. C)
establishing a registar to administer the act, including the granting of registrations, investigating
complaints and providing for disciplinary powers.
what does section 1 state? - ANS-defines the two types of persons that require registration
under the act: mortgage brokers and sub mortgage brokers.
difference between a mortgage broker and sub mortgage broker? - ANS-submortgage broker is
strictly an individual. Mortgage broker can be registered as a individual, corp, firm, partnership,
syndicate or unincorperation organization.
What does Section 1 of the act define a "mortgage broker" as (6) - ANS-1. carries on a business
of lending money secured in whole or in part by mortgages whether the money is their own or of
another person
2.holds themself out as or by advertisement, notice or sign indicates that they are a mortgage
broker
3. carries on a business of buying/selling mortgages or agreements for sale
4. in any one year, receives an amount of $1000 or more in fees or other considerations
excluding legal fees for arranging mortgages for other persons
5. during any 1 year, arranges 10 or more mortgages
6. carries on a business of collecting money secured by mortgages
arranging mortgages - ANS-any essential activity which is in part of the process of a borrower
obtaining a mortgage from a lender.
, what specific activities does the Registar regard as part of the mortgage arranging process? -
ANS-1. engaging in the business of soliciting borrowers for the mortgage referrals including lead
generation
2.taking mortgage applications
3. explaining mortgage terms and options
4. reviewing mortgage documents
5. obtaining credit checks
6. providing mortgage advice
t or f: does every mortgage brokers office need a designated individual? - ANS-true
can you be both a submortgage broker and mortgage broker? - ANS-yes; in case of a sole
proprietor
submortgage broker - ANS-any person who in BC actively engages in any of the things that
define mortgage broker and is employed, either generally or in a particular case by or is a
director or partner of a mortgage broker.
Section 21 and 22 of the Act state - ANS-a person commits a offence if they:
1. carries on business as a mortgage broker or sub mortgage broker unless that person is
registered under the Act
2. employs anyone as a sub mortgage broker and they are not registered under the act.
what are the penalties for violating section 21/22 - ANS-1st conviction - fine of not more than
$100,000 or imprisonment for not more than 2 yrs or both
2nd- fine of not more than $200,000 or imprisonment for not more than 2yrs or both
corporation- fine of $100,000
section 13 of the act states - ANS-no mortgage is rendered void or unenforceable because of
failure of a person acting as a mortgage broker to register properly under the ACT.
section 11 of the act states - ANS-exceptions for individuals/ entities
Exemptions from Registration - ANS-preceding exemptions are included in the act either
because, in the case of a individual, training and educational requirements that meet or exceed
those required or because the legislature has decided that registration under the Act is not
necessary to protect the public interest.
unregistered assistant - ANS-may not preform any of the essential functions of a "mortgage
broker" as defined in section 1 of the act
what things can't a unregistered assistant do: - ANS--marketing activities/solicit the public
constitutional-provide mortgage advice
-accept mortgage applications
what is the mortgage brokers act? - ANS-provincial statutes that regulate the conduct of all
persons who deal with mortgages in BC
how is the Business Practices and Consumer Protection Act relevant to mortgage brokers? -
ANS-it contains provisions governing mortgage brokers conduct
what does section 3 of the act state? - ANS-Requires mortgage brokers and sub mortgage
brokers to be registered in the mortgage broker register which is maintained by the Register.
What is the purpose of the act? - ANS-To protect the public
what are the 3 key objectives of the act - ANS-to protect the public by a) ensuring all those that
offer mortgage broking services meet certain minimum reasonable competency requirements in
order to obtain registration. b) setting out certain standards to ensure that mortgage brokers and
submortage brokers conduct themselves appropriately in the course of their business. C)
establishing a registar to administer the act, including the granting of registrations, investigating
complaints and providing for disciplinary powers.
what does section 1 state? - ANS-defines the two types of persons that require registration
under the act: mortgage brokers and sub mortgage brokers.
difference between a mortgage broker and sub mortgage broker? - ANS-submortgage broker is
strictly an individual. Mortgage broker can be registered as a individual, corp, firm, partnership,
syndicate or unincorperation organization.
What does Section 1 of the act define a "mortgage broker" as (6) - ANS-1. carries on a business
of lending money secured in whole or in part by mortgages whether the money is their own or of
another person
2.holds themself out as or by advertisement, notice or sign indicates that they are a mortgage
broker
3. carries on a business of buying/selling mortgages or agreements for sale
4. in any one year, receives an amount of $1000 or more in fees or other considerations
excluding legal fees for arranging mortgages for other persons
5. during any 1 year, arranges 10 or more mortgages
6. carries on a business of collecting money secured by mortgages
arranging mortgages - ANS-any essential activity which is in part of the process of a borrower
obtaining a mortgage from a lender.
, what specific activities does the Registar regard as part of the mortgage arranging process? -
ANS-1. engaging in the business of soliciting borrowers for the mortgage referrals including lead
generation
2.taking mortgage applications
3. explaining mortgage terms and options
4. reviewing mortgage documents
5. obtaining credit checks
6. providing mortgage advice
t or f: does every mortgage brokers office need a designated individual? - ANS-true
can you be both a submortgage broker and mortgage broker? - ANS-yes; in case of a sole
proprietor
submortgage broker - ANS-any person who in BC actively engages in any of the things that
define mortgage broker and is employed, either generally or in a particular case by or is a
director or partner of a mortgage broker.
Section 21 and 22 of the Act state - ANS-a person commits a offence if they:
1. carries on business as a mortgage broker or sub mortgage broker unless that person is
registered under the Act
2. employs anyone as a sub mortgage broker and they are not registered under the act.
what are the penalties for violating section 21/22 - ANS-1st conviction - fine of not more than
$100,000 or imprisonment for not more than 2 yrs or both
2nd- fine of not more than $200,000 or imprisonment for not more than 2yrs or both
corporation- fine of $100,000
section 13 of the act states - ANS-no mortgage is rendered void or unenforceable because of
failure of a person acting as a mortgage broker to register properly under the ACT.
section 11 of the act states - ANS-exceptions for individuals/ entities
Exemptions from Registration - ANS-preceding exemptions are included in the act either
because, in the case of a individual, training and educational requirements that meet or exceed
those required or because the legislature has decided that registration under the Act is not
necessary to protect the public interest.
unregistered assistant - ANS-may not preform any of the essential functions of a "mortgage
broker" as defined in section 1 of the act
what things can't a unregistered assistant do: - ANS--marketing activities/solicit the public
constitutional-provide mortgage advice
-accept mortgage applications
