The Mortgage Brokers Act provides the legislative framework for the regulation of mortgage
brokers in Saskatchewan. A mortgage broker is a person who carries on the business of
lending money on the security of land or of dealing in mortgages.
The licensing provisions of the Act do not apply to banks, credit unions, certain
insurance companies, certain trust and loan corporations, provincial or federal Crown
corporations, and members of the Law Society of Saskatchewan in the course of practicing
as barristers and solicitors.
The definition of a mortgage broker includes only those people or
entities whose mortgage brokering activities form part of the ordinary activities in which
they engage continuously or habitually for gain. A person who is assisting people in
obtaining mortgages must be engaging in this activity as a principal serious concern and
must be earning some kind of livelihood or income from this activity.
Generally, a person is considered to be acting as a mortgage broker, and therefore, to
require licensing under the Act, if the person’s activities include any of the
following:
- assisting borrowers in obtaining mortgage financing from financial institutions (banks,
credit unions, trust corporations, loan corporations, insurance companies or financing
corporations);
- assisting borrowers in obtaining mortgage financing from one private investor;
- assisting borrowers in obtaining mortgage financing by lending its own money;
- buying mortgages and/or selling mortgages;
- administering mortgages on behalf of lenders or investors;
- assisting borrowers in borrowing against the equity in their homes for the purpose of
receiving a lump sum or an income stream from a lender.
On March 20, 2007, a
letter was sent to all licensed mortgage brokers in Saskatchewan
to remind them to direct Saskatchewan residents only to
authorized lenders. Authorized lenders include those
lenders that are licensed under The Mortgage Brokers Act
or The Trust and Loan Corporations Act, 1997, or are
exempt from both acts. The
letter can be found at the following link:
Letter to remind all mortgage brokers to
direct Saskatchewan residents to authorized lenders
In July of 2004, the Financial
Institutions Division of the Saskatchewan Financial Services
Commission (“FID”) initiated a broad review of The Mortgage
Brokers Act with a view to modernizing the regulation of the
industries governed by that Act.
Bill 49, The Mortgage Brokerages and Mortgage
Administrators Act, received Royal Assent on May 17, 2007.
The Act will come into force on proclamation. For more
information, please click on the link below:
The Mortgage Brokerages and
Mortgage Administrators Consultation
For mortgage broker licensing see:
For more information:
- Superintendent of Insurance
Financial Institutions Division
Saskatchewan Financial Services Commission
Suite 601,
1919 Saskatchewan Drive
Regina, Saskatchewan
S4P 4H2
Phone: (306) 787-6700
Fax: (306) 787-9006
Email:
fid@sfsc.gov.sk.ca
Consolidation
of
The Mortgage Brokers Act
Consolidation of
The
Mortgage Brokers Regulations
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