Information on Licensing

Understanding Licensing and Application Requirements

If a person would like to provide mortgage services in B.C. or in relation to a property located in B.C., they are required to be licensed under the MSA, unless a licensing exemption applies. No matter what kind of corporate structure a mortgage brokerage has, anyone carrying on the business of providing mortgage services must have a licence, unless they are exempted.

More information on licensing exemptions can be found on BCFSA’s Mortgage Services Knowledge Base.

Mortgage services in BC are regulated through the Mortgage Services Act (“MSA”), Mortgage Services Regulation (“Regulation”), and Mortgage Services Rules (“Rules”). This information explains what a person needs to do to apply for and get a licence to offer mortgage services in B.C.

More information on the form and content of a licensing application can be found on BCFSA’s Mortgage Services Knowledge Base.

Licence Levels and Categories

To offer mortgage services in B.C., a person must be licensed in at least one level and one specific category (dealing, trading, administering, and lending). More information on licensing levels and categories can be found on BCFSA’s Mortgage Services Knowledge Base.

Exemptions

There are some specific exemptions from needing a licence under the MSA, Regulations and Rules. More information on licensing exemptions can be found on BCFSA’s Mortgage Services Knowledge Base.

Applications

Applications in Relation to Licences 

An application for a licence includes: 

• a new licence, or 
• the renewal, amendment or reinstatement of an existing licence. 

Qualifications for Obtaining a Licence

New Licence

To get a new licence, an applicant must prove to the Superintendent that they:

• are of good reputation;
• are suitable for the licence;
• are at least 19 years old; and
• meet the education and experience requirements outlined in the Rules.

More information on suitability and good reputation can be found on BCFSA’s Mortgage Services Knowledge Base.

Licence Renewal

To renew a licence, an applicant must show the Superintendent that they meet the above requirements, as well as the continuing educational requirements specified by the Superintendent. More information on education requirements can be found on BCFSA’s Mortgage Services Knowledge Base.

Partnership/Corporation Application

If an applicant is not an individual, the following must be of good reputation:

• the applicant’s partners or directors and officers;
• if a partner of the applicant is a corporation, the corporation’s directors and officers; or
• if the applicant is not a partnership or corporation, the individuals who directly or indirectly control the applicant.

Obtaining a Licence

To apply for a new licence, or to renew, amend, or reinstate a licence, a person must provide the required information and records, and pay the prescribed fees. If a person’s licence is inactive or suspended, the Superintendent may allow them to apply for reinstatement instead of getting a new licence. The Superintendent can also refuse to accept a person’s application until they pay any amount owed to BCFSA. More information on the form and content of a licensing application can be found on BCFSA’s Mortgage Services Knowledge Base.

Superintendent’s Power to Evaluate Applications

The Superintendent can require applicants to provide additional information, documents, or verification. BCFSA can also conduct investigations to evaluate applications. More information on suitability can be found on BCFSA’s Mortgage Services Knowledge Base.

Licence Continues During Renewal Application Process

A licence continues to stay valid past its expiration date if the licensee applies for renewal before it expires. The licence remains valid until the Superintendent informs the licensee of their decision regarding the application.

Refusal to Issue or Renew Licence

The Superintendent can refuse to issue a licence if the applicant does not meet the qualification requirements. For new mortgage brokerage applications, the Superintendent can also refuse to issue the licence if the applicant’s legal name or trade name is likely to confuse or mislead the public.

Before refusing, the Superintendent must notify the applicant and give them a chance to be heard. If the licence is refused after a hearing, the Superintendent must:

• provide the applicant with written notice of the refusal and the reasons, and
• inform the applicant of their right to appeal.

Temporary Licences

The Superintendent can issue a temporary licence with certain conditions that must be met by a specific date. If the conditions are not met by that date, the temporary licence is cancelled. If the conditions are met on time, a full licence will likely be issued.

Licensing Conditions, Restrictions, and Amendments

Conditions and Restrictions for Specific Licences

The Superintendent can add conditions and restrictions to a licence, which then become part of the licence. Before doing this, the Superintendent must give written notice to the licensee, allow them to be heard, and remind them of their right to appeal. The Superintendent can remove conditions or restrictions at any time. The Superintendent may require licensees to pay for the costs of the hearing, but these costs cannot be more than what the Regulation states. This may include paying expenses for BCFSA employees who were engaged in the hearing.

Amendments to Reflect Conditions and Restrictions

If a brokage licence has conditions or restrictions, the Superintendent can apply these to the brokerage’s related licensees. The Superintendent can also change the brokerage’s licence to match the conditions and restrictions on the principal broker’s licence. For example, if new conditions or restrictions are added to the principal broker’s licence, the brokerage’s licence will be updated to reflect these changes. Similarly, if conditions or restrictions on the principal broker’s licence are changed or removed, the brokerage’s licence will be updated accordingly.

Licence Amendments

Amending a licence means changing it by adding or removing parts of it, such as adding or removing a category of mortgage services. The Superintendent can change a licence in the following situations:

• When the licensee applies in writing or gives written consent;
• To reflect conditions/restrictions and changes to those conditions or restrictions;
• To enforce an order from investigations or discipline proceedings;
• To enforce a Rule.

Public Register

Register of Licensees

BCFSA must maintain a public register of brokerages, principal brokers, and mortgage brokers. The register shows the licensee’s name and the level and category of licence they have.

Additional Licensing Information

Remuneration

A person cannot be paid for mortgage services unless they were licensed or exempt from needing a license when they provided those mortgage services.

Mortgage Remains Valid

A mortgage is still valid even if:

• A person was not licensed who should have been,
• There was a mistake or issue with the application for a new licence, or for the renewal, amendment or reinstatement of an existing licence. 

A mortgage is also still valid even if:

• a disclosure statement or information statement was not provided as required, or 
• there was a mistake, omission or issue with a disclosure statement or information statement. 

Effect of Failure to Provide Information Statement – Certain Transactions 

If a licensee is involved in

• arranging a mortgage in which another person is to be the mortgagee,
• selling a mortgagee’s interest in a mortgage from one person to another, or
• selling the licensee’s own interest as a mortgagee of a mortgage to another person,

the licensee must provide the other party with an information statement as required by the Rules. This statement must be delivered within the timelines and parameters set out in section 73 of the Rules. If the licensee fails to provide this information statement, the intended mortgagee or purchaser is not obligated to advance funds under the mortgage transaction.

Mortgage Brokerage Must Have a Principal Broker 

A mortgage brokerage must have at least one licensed principal broker. The brokerage can only offer mortgage services that the principal broker’s licence allows. The principal broker represents the brokerage in all matters under the MSA, including reporting to BCFSA. Principle brokers are also responsible for: 

• using rights given to the brokerage by its licence, 
• fulfilling duties required by the brokerage’s licence, and 
• supervising the mortgage brokers licensed under the mortgage brokerage. 

Mortgage Brokerage Responsibility for Training and Supervision 

A mortgage brokerage must make sure that certain individuals do not train or supervise principal brokers and mortgage brokers unless they are licensed under the mortgage brokerage. Trainers who must be licensed are:

• a partner, or a director, officer, or shareholder of a corporation that is a partner (for a partnership); 
• a director, officer, or shareholder of the corporation (for a corporation); 
• a sole proprietor (for a sole proprietorship); 
• someone who directly or indirectly controls the brokerage (for other cases). 

Applicable Section of Mortgage Services Act, its Regulations, or the Mortgage Services Rules

MSA

s. 3 [Requirement for licence to provide mortgage services]

s. 4 [Exemptions]

s. 5 [No recovery of remuneration by person required to be licensed]

s. 6 [Effect of failure to be licensed]

s. 7 [Effect of failure to provide disclosure statement or information statement]

s. 8 [Effect of failure to provide information statement – certain transactions]

MSA Rules

s. 2 [Licence categories]

s. 3 [Mortgage brokerage must have principal broker – exception]

s. 4 [Principal broker may be licensed in relation to a maximum number of affiliated mortgage brokerages]

s. 14 [Licence certificates]

s. 15 [Term of licence]

s. 16 [Change in controlling persons of mortgage brokerage]

s. 17 [Trust account authorization – amendment to licence]