Mortgage Broker Bulletins by dfsdf224s

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									                                 Registrar of Mortgage Brokers             INFORMATION
                                            nd
                                 1200 - 13450 102 Avenue
                                 Surrey, BC V3T 5X3
                                 Phone: 604-953-5300
                                 Fax: 604-953-5301
                                                                           BULLETIN


           BULLETIN NUMBER:               MB 06-002

           TITLE:                         MISLEADING ADVERTISING AND
                                          REQUIREMENTS FOR MORTGAGE LOAN
                                          ADVERTISING (REPLACES BULLETIN MB-95-
                                          001 MISLEADING ADVERTISING)

           LEGISLATION:                   MORTGAGE BROKERS ACT

           DATE:                          July 18, 2006


Mortgage brokers are prohibited from making false, misleading or deceptive statements in any kind of
advertising under section 14 of the Mortgage Brokers Act.

Examples of misleading advertising include providing sample monthly repayment figures for mortgage
loans requiring no repayment of principal without identifying that the payments represent only the
interest, or advertising payment amounts for mortgage loans with unusually long amortization periods
that do not specify the amortization period. Advertisements containing repayment figures should
contain an indication of the amortization period used to determine the repayment figure. Likewise
advertisements for interest only mortgages should specify that the repayments do not include any
principal amounts. Failure to disclose this information may be viewed as misleading and a violation of
section 14 of the Mortgage Brokers Act.

In addition, certain provisions in the Business Practices and Consumer Protection Act, Part 5, came
into force on July 1, 2006 which impose additional requirements on mortgage loan advertising.

These new provisions require that advertisements for fixed credit, which state the interest rate or any
amount of repayment, must also state the term and the annual percentage rate (“APR”). The APR
must be displayed as prominently as the repayment figure or the interest rate.

If an advertisement states or implies that no interest is payable for a certain period, it must clearly
state that the mortgage loan contains an interest free period or a grace period. Any such
advertisements must also state the conditions which apply to interest free or grace periods and state
the APR which will apply if the conditions are not satisfied. If the advertisement fails to state that

there is a grace period, describe the conditions or state the APR, then the advertisement is
deemed to represent the loan as being unconditionally interest free during the relevant period.

If information, which is required to be included in an advertisement, is different for different mortgage
loans, then the advertisement must explain that the information relates to a representative
transaction. A representative transaction must be reasonably typical of the mortgage loans to which
the advertisement relates.
                                                                                                     …/2
MB 06-002                                                   -2-                                                      July 18, 2006

Advertisements that do not disclose the required information may lead to regulatory action.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –




                                                                                                                               …../3
                                                                   INFORMATION
                                                                   BULLETIN
BULLETIN NUMBER:                         MB10-007

TITLE:                                   ADVANCE FEES AND DEPOSITS HELD IN
                                         TRUST

LEGISLATION:                             BUSINESS PRACTICES AND CONSUMER
                                         PROTECTION ACT (the “BPCPA”) and
                                         MORTGAGE BROKERS ACT

DATE:                                    SEPTEMBER 2010


1.   At the beginning of every transaction, a mortgage broker should have each client
     sign a Client Service Agreement and Authorization which sets out:

        the parameters of the services to be provided to the client;
        the cost of or fees for the services to be provided by the mortgage broker, if
         any;
        all authorizations that may be required by the mortgage broker or lender, such
         as a credit bureau authorization and a consent to disclose information
         necessary to the completion of the mortgage (e.g. to the client`s real estate
         agent, insurance agent and conveyancing lawyer or notary public); and
        the client`s responsibility to bear other costs of the mortgage (e.g. the
         appraisal or legal fees).

2.   Section 5 of the BPCPA prohibits mortgage brokers or lenders from engaging in
     deceptive acts or practices for transactions that are for primarily personal, family
     or household purposes. In addition, section 4(3) makes it a deceptive act or
     practice for any mortgage broker or lender to arrange a mortgage for a fee,
     unless the fee is deducted from the mortgage advance at the time of closing.
     Therefore, a registered mortgage broker or lender cannot take advance fees from
     clients for arranging residential mortgages, as fees can only be taken from the
     advance of mortgage funds at the time of mortgage funding.


Registrar of Mortgage Brokers                                       1200 - 13450 102nd Avenue
                                                                           Surrey, BC V3T 5X3
                                                                      Telephone: 604-953-5300
                                                                       Facsimile: 604-953-5301
                                                                        http://www.fic.gov.bc.ca
MB10-007                                          -2-                           SEPTEMBER 2010


3.     It is permissible for mortgage brokers and lenders to take sums of money from
       clients in advance of mortgage funding to cover actual costs of the mortgage
       transaction which are paid to third parties (e.g. legal costs, appraisal fees) where
       the individual has agreed to compensate the mortgage broker or lender for such
       costs.


4.     Mortgage brokers and lenders who take refundable monies in advance of
       mortgage funding for:

          transaction costs, as set out in paragraph 3; or
          advance fees, in the case of commercial or non-residential transactions,

       must keep such monies in a trust account, in the name of the mortgage broker or
       lender.


5.     Registered mortgage brokers and lenders who handle trust monies must be
       authorized to do so by the Registrar. Any registrant which is not currently
       authorized to handle trust monies and wishes to do so must contact the
       Registrar’s staff and obtain authorization.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act,
Business Practices and Consumer Protection Act and Regulations. While the comments in a particular
part of an information bulletin may relate to provisions of the law in force at the time they were made,
these comments are not a substitute for the law. The reader should consider the comments in light of the
relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the
comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                                                     INFORMATION
                                                                     BULLETIN
BULLETIN NUMBER:                           MB 10-005

TITLE:                                     CO-BROKERING: REQUIREMENT FOR
                                           BOTH MORTGAGE BROKERS IN A CO-
                                           BROKERING ARRANGEMENT TO BE
                                           REGISTERED

LEGISLATION:                               MORTGAGE BROKERS ACT

DATE:                                      JUNE 2010


Mortgage brokers enter into co-brokering arrangements with other mortgage brokers
when they share the responsibility to originate mortgages with other mortgage brokers.
Co-brokering differs from making mortgage referrals, as referral sources pass on
potential client information to other registered brokers without participating in the
origination process.

Activities which are included in the origination process include:

      Meeting with borrowers;

      Taking mortgage applications;

      Conducting due diligence to confirm the identity of potential borrowers and to
       verify the application information provided to lenders;

      Obtaining required consents from clients to perform credit bureau searches;

      Shopping mortgage applications to lenders;

      Providing mortgage commitments to borrowers and ensuring that conditions are
       satisfied;

      Ordering appraisals; and

      Preparing disclosure documents and ensuring that they are reviewed and
       executed by required parties.


Registrar of Mortgage Brokers                                         1200 - 13450 102nd Avenue
                                                                             Surrey, BC V3T 5X3
                                                                        Telephone: 604-953-5300
                                                                         Facsimile: 604-953-5301
                                                                          http://www.fic.gov.bc.ca
MB 10-005                                         -2-                                    JUNE 2010


Mortgage brokers and submortgage brokers must ensure that they do not co-broker a
mortgage transaction with a person in British Columbia who is not registered under the
Mortgage Brokers Act, or with a person in another jurisdiction, who is not licensed or
registered as a mortgage broker in that other jurisdiction.

Both brokers in a co-brokering arrangement are equally liable for the mortgage
transaction, and will share regulatory responsibility for compliance issues. However, if
an individual in a co-brokering arrangement is not registered, and there are regulatory
compliance issues with the transaction, it is likely that the registered broker will be the
focus of disciplinary proceedings.

In addition, brokers should be aware that compliance problems are more likely to occur
in co-brokered transactions with unregistered individuals. In some cases, brokers who
co-broker mortgages with unregistered individuals may be participating in fraudulent
transactions. For example, FICOM has recently received reports from industry
members that an unregistered individual is presenting fully completed mortgage
application forms to registered mortgage brokers and asking that they present the
applications to their lenders. When mortgage brokers ask to meet with the borrowers,
the unregistered individual will leave, and seek out another mortgage broker to process
the application. While the true nature of the transaction is not known, there is a strong
possibility that the transaction is fraudulent, and may even involve identity theft or straw
buyers.

Mortgage brokers may verify the registration status of another mortgage broker or
submortgage broker by checking FICOM’s online data base at http://www.fic.gov.bc.ca/
or by contacting FICOM at 604-953-5300 or FICOM@ficombc.ca.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act,
Business Practices and Consumer Protection Act and Regulations. While the comments in a particular
part of an information bulletin may relate to provisions of the law in force at the time they were made,
these comments are not a substitute for the law. The reader should consider the comments in light of the
relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the
comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                                                      INFORMATION
                                                                       BULLETIN

    BULLETIN NUMBER:             MB 09-004

       TITLE:                     CONFLICT OF INTEREST PROTECTIONS FOR
                                  BORROWERS DEALING WITH ORIGINATING
                                  LENDERS

       LEGISLATION:               MORTGAGE BROKERS ACT

       DATE:                      May 13, 2009



Mortgage brokers who arrange mortgages for borrowers, in which the loaned mortgage
funds belong to the mortgage broker itself or a related party or associate of the
mortgage broker (“Originating Lenders”), will be in a conflict of interest with the
borrower. The mortgage arranging activities of Originating Lenders create either an
actual or a perceived conflict of interest, as they, unlike mortgage brokers who are
independent of lenders, may put their interests as lenders ahead of those of borrowers
by failing to obtain the best and most competitive mortgage terms for borrowers.

The Registrar’s office has received a significant number of complaints from borrowers
who have borrowed money from Originating Lenders. In some circumstances,
borrowers have been pressured by a submortgage broker of the Originating Lender to
sign mortgage documents before being given an opportunity to fully review the
paperwork, which is necessary to ensure that mortgage terms, such as interest rates,
penalty provisions, interest buy down fees, lender and broker fees, and other
administrative fees match the verbal assurances provided to them by the submortgage
broker. Pursuant to section 66 of the Business Practices and Consumer Protection Act
(the “BPCPA”), borrowers are entitled to receive cost of credit disclosure two days in
advance of incurring an obligation under a mortgage or making a payment relating to a
mortgage agreement. Borrowers who are not given an opportunity to fully review cost of
credit disclosure may not understand the costs associated with their mortgage, be able
to assess whether they can afford the mortgage, or compare the terms of the mortgage
with that of competitor lenders.

Under section 8(1) of the Mortgage Brokers Act, mortgage brokers, including Originating
Lenders, can be disciplined by the Registrar if they:

       Are party to a mortgage transaction which is harsh and unconscionable or
        otherwise inequitable;
MB 09-004                                                   -2-                                                     May 13, 2009
                  Conduct business in a manner that is otherwise prejudicial to the public interest;
                   or

                  Breach a provision of Part 2 or 5 of the BPCPA prescribed under section 9.1 (2).
                   Part 2 of the BPCPA governs unfair practices and Part 5 governs cost of credit
                   disclosure.

         Originating Lenders who deal with borrowers must therefore take the following steps to
         ensure that that the interests of borrowers are better protected:

         1)       Originating Lenders must not proceed with a mortgage transaction without
                  ensuring that a borrower obtains independent legal advice at a separate office
                  location from that of the mortgage broker prior to the borrower executing the
                  mortgage documentation;

         2)       Originating Lenders must, without any exception or waiver, provide cost of credit
                  disclosure required under Part 5 of the BPCPA to borrowers at least two business
                  days prior to the borrower executing the mortgage documentation; and

         3)       Originating Lenders must provide conflict of interest disclosure to borrowers in
                  Form 10, as required by section 17.3 of the Mortgage Brokers Act.

         The Registrar of Mortgage Brokers may seek to impose regulatory penalties against any
         mortgage broker who acts as an Originating Lender and fails to take the steps identified
         above. For further information about this matter, please contact the staff of the
         Registrar of Mortgage Brokers at 604 953-5300.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.
                            Registrar of Mortgage Brokers               INFORMATION
                                       nd
                            1200 - 13450 102 Avenue
                            Surrey, BC V3T 5X3
                            Phone: 604-953-5300
                            Fax: 604-953-5301
                                                                        BULLETIN


        BULLETIN NUMBER:                MB 08-005

           TITLE:                       FORM 11 – INVESTOR/LENDER CONFLICT OF
                                        INTEREST DISCLOSURE STATEMENT

           LEGISLATION:                 MORTGAGE BROKERS ACT

           DATE:                        October 7, 2008



The prescribed Form 10 Conflict Interest Disclosure Statement, which must be provided to
investors and lenders, will be replaced by the attached Form 11 Investor/Lender Conflict of
Interest Disclosure Statement on January 1, 2009.

All mortgage broker registrants have an obligation to provide disclosure of their interests to
investors and lenders. Form 11 will be the Conflict of Interest Disclosure Statement prescribed
pursuant to section 17.4 of the Mortgage Brokers Act as of January 1, 2009. Section 17.4
requires that every mortgage broker, who acts in a mortgage transaction in which the mortgage
broker, or any associate or related party of the mortgage broker, has or may acquire a direct or
indirect interest, to disclose that interest to the investor or lender. Associates and related parties
include spouses and submortgage brokers of mortgage brokers and related corporate entities.
*See below for definitions of associate and related parties.

A disclosable interest exists where a mortgage broker or an associate of the mortgage broker has
a personal or business interest in a mortgage transaction. The Form 11 requires a mortgage
broker to provide disclosure of the following specific interests.

1. Mortgage Broker’s Interest in the Transaction

Mortgage brokers must disclose whether they, their associates or related parties have any interest
in the mortgage transaction. Mortgage brokers will have a disclosable interest in a transaction if
they, their associates or related parties:

       •    are or will be a syndicate mortgage partner in a syndicated mortgage with other
            mortgage investors in the same transaction;
       •    are or will be the registered or beneficial borrower in the mortgage transaction;
       •    are or will be a guarantor of the borrower’s obligation under the mortgage;
       •    are or will be a shareholder in or director of a corporate borrower; or
       •    will acquire the whole or part of the mortgage interest from the lender, investor or
            syndicate mortgage partner.

                                                                                                   …/2
MB 08-005                                          -2-                                           October 7, 2008


  2. Compensation to the Mortgage Broker

  Mortgage brokers do not need to provide disclosure of how they will be compensated in a
  mortgage transaction to the investor/lender if they are compensated directly by that
  investor/lender. However, all other methods of compensation should be disclosed in the Form 11.
  For instance, mortgage brokers should disclose whether they will receive any kind of
  compensation or benefit from a borrower or any other party to the transaction, such as another
  syndicated mortgage lender. Compensation includes cash, volume bonuses, points, rewards, part
  or all of the sale proceeds of a property, or any other kind of benefit, advantage, or remuneration.

  3. Referrals to Mortgage Broker

  If the mortgage broker has paid a referral fee to the party, they should disclose the name of the
  party and the amount of the fee.

  Subsection 17.4 (2)(c) states that the Form 11 must be dated and signed by the mortgage broker.
  The Regulations also require that the Form 11 be given to a lender prior to the lender’s funds
  being released from trust on the direction of the lender, if the funds are held in trust, and if they
  are not held in trust, prior to the advancement of the funds by the lender. Mortgage brokers must
  retain a copy of every Conflict of Interest Disclosure Statement for a period of at least seven
  years.

  Any questions about completing or delivering the Form 11 can be addressed to the
  Registrar’s Staff.
  ______________________________________________________________________________

  *     Definitions
      "associate" means, if used to indicate a relationship with any person:

               (a)     a submortgage broker employed by that person;

               (b)     a partner of that person;

               (c)     a trust or estate in which that person has a substantial beneficial interest or for which
                       that person serves as trustee or in a similar capacity;

               (d)     a corporation in respect of which that person beneficially owns or controls, directly or
                       indirectly, voting securities carrying more than 10% of the voting rights attached to all
                       outstanding voting securities of the corporation;

               (e)     a relative, including a spouse, of that person; or

               (f)     a relative of that person's spouse, if the relative has the same home as that person.

   "related party" means, in respect of a person, any other person that is

               (a)     related to the person under subsection (2) to (4), or

               (b)     deemed to be a related party under subsection (5).


                                                                                                                   …/3
MB 08-005                                                    -3-                                                   October 7, 2008
             (2)     Each of 2 persons is related to the other if:

                   (a)     either influences the other,

                   (b)     both influence the same third person, or

                   (c)     both are influenced by the same third person.
             (3)     For the purposes of subsection (2), a person influences another person if, through the
                     beneficial ownership of or exercise of control or direction over, or through a combination of
                     such ownership of or control or direction over:

                   (a)     voting securities of that other person,

                   (b)     securities currently convertible or exchangeable into voting securities of that other
                           person, or

                   (c)     securities carrying a currently exercisable right to acquire voting securities of that other
                           person or to acquire convertible or exchangeable securities referred to in paragraph (b),
                           whether directly or indirectly and whether alone or in combination with one or more
                           persons, the person exercises a controlling influence over the management and policies
                           of that other person.
             (4)     For the purposes of subsection (2) and without limiting the generality of subsection (3), a
                     person, in the absence of evidence to the contrary, is deemed to influence another person if
                     the first person:

                   (a)     beneficially owns or exercises control or direction over securities that constitute in the
                           aggregate more than 20% of the outstanding securities of any class or series of voting
                           securities of that other person, or

                   (b)     would, upon conversion, exchange or exercise of any security or right referred to in
                           subsection (3) (b) or (c), beneficially own or exercise control or direction over securities
                           that would constitute in the aggregate more than 20% of the outstanding securities of
                           any class or series of voting securities of that other person, whether directly or indirectly
                           and whether alone or in combination with one or more other person.

             (5)     If any 2 persons are related parties of the same other person, the 2 persons are deemed to be
                     related parties of each other.

At the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions regarding certain
provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations. While the
comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were made, these
comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of the law in
force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions occurring
after the date on which the comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                                - 30 –
                                                                                                           Page 1 of 2

              Registrar of Mortgage Brokers                                    Number:
              1200—13450 102nd Avenue
               Surrey, BC V3T 5X3



     INVESTOR/LENDER CONFLICT OF INTEREST DISCLOSURE STATEMENT
                                             FORM 11 – Section 17.4

This information statement has not been filed with the Registrar of Mortgage Brokers. There has
been no determination made by the Registrar as to whether the disclosed information complies
with the Mortgage Brokers Act.


Please write or print clearly. If additional information is required, reference and attach a schedule to this form.


Name of Borrower



Name of Mortgage Broker:                                       Telephone:



Name of Submortgage Broker:



Civic address of property to be mortgaged:



Legal description of property to be mortgaged:



Name of Investor/Lender:



Date of transaction:




Mortgage Broker’s Interest in the Transaction

          The Mortgage Broker and/or its associates or related parties will not acquire a direct or
          indirect interest in the transaction described above.
          The Mortgage Broker and/or its associates or related parties will acquire a direct or indirect
          interest in the transaction described above. In particular, __________________________,
                                                                           (State the Name of Party)
          who is ___________________________________________________ will:
                           (State Relationship with Mortgage Broker)

                       be a syndicate mortgage lender with the lender/investor;
                       be either the registered or beneficial borrower in the transaction; or
                       acquire the mortgage from the lender/investor.




MBA F11 01/2009
                                                                            Initials:            Date:
                                                                                                 Page 2 of 2


Compensation to the Mortgage Broker

The mortgage broker has been or will be compensated in this transaction by:

                   receiving a fee from the borrower, and/or

                   _________________________________________________________________.
                   (Please explain compensation)

Referrals to the Mortgage Broker

The Mortgage Broker, its associates or related parties have paid or will pay a fee in the amount of
$_____________to ____________________________________ for receiving a referral or
                                          (Name)
recommendation relating to the transaction.




CERTIFICATION

I certify that I am the mortgage broker or an authorized representative of the mortgage broker
and based on my knowledge, belief and information provided by third parties, this Disclosure
Statement contains no untrue statement and does not omit to state a fact that is required to be
stated or that Is necessary to prevent a statement that is made from being false or misleading in
circumstances in which it was made.


Full name of Mortgage Broker                                                Address (Including Postal Code)



Signature of Mortgage Broker or Authorized Representative                      Date Signed (YYYY,MM,DD)



ACKNOWLEDGEMENT OF RECEIPT


Signature                                 Name (Please Print)                 Date Signed (YYYY,MM,DD)




MBA F11 01/2009
                                                                Initials:               Date:
                             Registrar of Mortgage Brokers            INFORMATION
                                        nd
                             1200 - 13450 102 Avenue
                             Surrey, BC V3T 5X3
                             Phone: 604-953-5300
                             Fax: 604-953-5301
                                                                      BULLETIN


       BULLETIN NUMBER:               MB 08-004

        TITLE:                        FORM 10 – BORROWER CONFLICT OF
                                      INTEREST DISCLOSURE STATEMENT

        LEGISLATION:                  MORTGAGE BROKERS ACT

        DATE:                         October 7, 2008


The prescribed Form 10 Conflict Interest Disclosure Statement, which must be provided to
borrowers, will be replaced by the attached Form 10 Borrower Conflict of Interest Disclosure
Statement on January 1, 2009.

All mortgage broker registrants have an obligation to provide disclosure of their interests to
borrowers. Form 10 will be the Conflict of Interest Disclosure Statement prescribed pursuant to
section 17.3 of the Mortgage Brokers Act as of January 1, 2009. Section 17.3 requires that every
mortgage broker, who acts in a mortgage transaction in which the mortgage broker, or any
associate or related party of the mortgage broker, has or may acquire a direct or indirect
interest, to disclose that interest to the borrower. Associates and related parties include spouses
and submortgage brokers of mortgage brokers and related corporate entities. *See below for
definitions of associate and related parties.

A disclosable interest exists where a mortgage broker or an associate of the mortgage broker has
a personal or business interest in a mortgage transaction. The Form 10 requires the mortgage
broker to provide disclosure of the following specific interests.

1. Other Parties to the Transaction Represented by the Mortgage Broker

Mortgage brokers who deal with or represent more than one party in a transaction should disclose
who those other parties are to the borrower. It may be impossible for mortgage brokers or their
associates to completely avoid conflicts between multiple parties in a transaction, and being in a
conflict of interest does not necessarily mean that the mortgage broker has engaged in any wrong
doing. However, conflicts between multiple parties may affect the broker’s judgment or his or her
sense of duty to act in the best interests of the client. Mortgage brokers must therefore disclose to
the borrower whether they also represent or act for the lender, syndicate mortgage lenders,
persons or entities who may acquire the mortgage from the lender, or any other party to the
transaction.


                                                                                              …/2
MB 08-004                                      -2-                                    October 7, 2008


  2. Mortgage Broker’s Interest in the Transaction

  Mortgage brokers must disclose whether they, their associates or related parties have any interest
  in the mortgage transaction. Mortgage brokers will have a disclosable interest in a transaction if
  they, their associates or related parties:

     •   are or will be the lender in the mortgage transaction;
     •   are or will be a syndicate mortgage partner in a syndicated mortgage with other mortgage
         investors in the same transaction; or
     •   will acquire the whole or part of the mortgage interest from the lender, investor or a
         syndicate mortgage lender.

  3. Compensation to the Mortgage Broker

  Mortgage brokers do not need to provide disclosure of how they will be compensated in a
  mortgage transaction to the borrower if they are compensated directly by that borrower. However,
  all other methods of compensation should be disclosed in the Form 10. For instance, mortgage
  brokers should disclose whether they will receive any kind of compensation or benefit from a
  lender or any other party to the transaction, such as a syndicated mortgage lender.
  Compensation includes cash, volume bonuses, points, rewards, part or all of the sale proceeds of
  a property, or any other kind of benefit, advantage, or remuneration.

  4. Referrals to Mortgage Brokers

  If the mortgage broker has paid a referral fee to a party, they should disclose the name of the
  party and the amount of the fee.

  Subsection 17.3 (2)(c) states that the Form 10 must be dated and signed by the mortgage broker.
  The Mortgage Brokers Act Regulations require that the Form 10 be given to a borrower at the
  earliest opportune time, and in any event, before the borrower signs the mortgage or any ancillary
  agreement with the broker or lender, including an agency agreement with the broker that commits
  the borrower to the mortgage transaction.

  Mortgage brokers must retain a copy of every Conflict of Interest Disclosure Statement for a
  period of at least seven years.

  Any questions about completing or delivering the Form 10 can be addressed to the
  Registrar’s Staff.
  ______________________________________________________________________________

  * Definitions:

   "associate" means, if used to indicate a relationship with any person:

             (a)    a submortgage broker employed by that person;

                                                                                                    …/3
MB 08-004                                             -3-                                         October 7, 2008


                (b)    a partner of that person;

                (c)    a trust or estate in which that person has a substantial beneficial interest or for which
                       that person serves as trustee or in a similar capacity;

                (d)    a corporation in respect of which that person beneficially owns or controls, directly or
                       indirectly, voting securities carrying more than 10% of the voting rights attached to all
                       outstanding voting securities of the corporation;

                (e)    a relative, including a spouse, of that person; or

                (f)    a relative of that person's spouse, if the relative has the same home as that person.

  "related party" means, in respect of a person, any other person that is

                (a)    related to the person under subsection (2) to (4), or

                (b)    deemed to be a related party under subsection (5).
          (2)     Each of 2 persons is related to the other if:

                (a)    either influences the other,

                (b)    both influence the same third person, or

                (c)    both are influenced by the same third person.
          (3)     For the purposes of subsection (2), a person influences another person if, through the
                  beneficial ownership of or exercise of control or direction over, or through a combination of
                  such ownership of or control or direction over:

                (a)    voting securities of that other person,

                (b)    securities currently convertible or exchangeable into voting securities of that other
                       person, or

                (c)    securities carrying a currently exercisable right to acquire voting securities of that other
                       person or to acquire convertible or exchangeable securities referred to in paragraph (b),
                       whether directly or indirectly and whether alone or in combination with one or more
                       persons, the person exercises a controlling influence over the management and policies
                       of that other person.
          (4)     For the purposes of subsection (2) and without limiting the generality of subsection (3), a
                  person, in the absence of evidence to the contrary, is deemed to influence another person if
                  the first person:

                (a)    beneficially owns or exercises control or direction over securities that constitute in the
                       aggregate more than 20% of the outstanding securities of any class or series of voting
                       securities of that other person, or

                (b)    would, upon conversion, exchange or exercise of any security or right referred to in
                       subsection (3) (b) or (c), beneficially own or exercise control or direction over securities
                       that would constitute in the aggregate more than 20% of the outstanding securities of
                       any class or series of voting securities of that other person, whether directly or indirectly
                       and whether alone or in combination with one or more other person.

                                                                                                                   …/4
MB 08-004                                                 -4-                                                    October 7, 2008


           (5)    If any 2 persons are related parties of the same other person, the 2 persons are deemed to be
                  related parties of each other.

  At the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions regarding
  certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
  While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
  made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant
  provisions of the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant
  court decisions occurring after the date on which the comments were made. Subject to the above, an interpretation or position
  contained in an information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                              - 30 –
                                                                                                             Page 1 of 2

              Registrar of Mortgage Brokers                                 Number:
              1200—13450 102nd Avenue
               Surrey, BC V3T 5X3



                  BORROWER CONFLICT OF INTEREST DISCLOSURE STATEMENT
                                                   FORM 10 – Section 17.3
This information statement has not been filed with the Registrar of Mortgage Brokers. There has
been no determination made by the Registrar as to whether the disclosed information complies
with the Mortgage Brokers Act.

Please write or print clearly. If additional information is required, reference and attach a schedule to this form.


Name of Borrower:



Name of Lender:



Name of Mortgage Broker:                                    Telephone:



Name of Submortgage Broker:



Civic address of property to be mortgaged:



Legal description of property to be mortgaged:



Date of transaction:




Other Parties to the Transaction Represented by the Mortgage Broker

          The Mortgage Broker does not represent other parties to the transaction described above.

          The Mortgage Broker does represent other parties to the transaction described above,
          who are:
                       The lender:
                                        Name
Syndicate mortgage lenders:
 (attach list if more space required)
                                        Name

                                        Name

                                        Name
 A person or entity which will
  acquire the mortgage from
         the investor/lender:
                                        Name
     Other – please describe:


MBA F10 01/2009
                                                                              Initials:           Date:
                                                                                                                Page 2 of 2




Mortgage Broker’s Interest in the Transaction

            The Mortgage Broker and/or its associates or related parties will not acquire a direct or
            indirect interest in the transaction described above.
            The Mortgage Broker and/or its associates or related parties will acquire a direct or indirect
            interest in the transaction described above. In particular,                                                  ,
                                                                                           (State the Name of Party)
            who is                                                     will:
                          (State Relationship with Mortgage Broker)

                     be the lender in the transaction;
                     be a syndicate mortgage lender with the lender/investors; or
                     acquire the mortgage from the lender or investor.

Compensation to the Mortgage Broker

The mortgage broker has been or will be compensated in this transaction by:

                     receiving a fee from the lender, and/or

                     _______________________________________________________________
                     (Please explain compensation)

Referrals to the Mortgage Broker

The Mortgage Broker, its associates or related parties have paid or will pay a fee in the amount of
$_____________to                                        ____________     for receiving a referral or
                                            (Name)
recommendation relating to the transaction.


CERTIFICATION

I certify that I am the mortgage broker or an authorized representative of the mortgage broker
and based on my knowledge, belief and information provided by third parties, this Disclosure
Statement contains no untrue statement and does not omit to state a fact that is required to be
stated or that Is necessary to prevent a statement that is made from being false or misleading in
circumstances in which it was made.


Full name of Mortgage Broker                                                           Address (Including Postal Code)



Signature of Mortgage Broker or Authorized Representative                                   Date Signed (YYYY,MM,DD)



ACKNOWLEDGEMENT OF RECEIPT


Signature                                  Name (Please Print)                             Date Signed (YYYY,MM,DD)




MBA F10 01/2009
                                                                               Initials:             Date:
                                Registrar of Mortgage Brokers            INFORMATION
                                           nd
                                1200 - 13450 102 Avenue
                                Surrey, BC V3T 5X3
                                Phone: 604-953-5300
                                Fax: 604-953-5301
                                                                         BULLETIN


        BULLETIN NUMBER:                 MB 08-003

        TITLE:                           FORM 9 – INVESTOR/LENDER DISCLOSURE
                                         STATEMENT

        LEGISLATION:                     MORTGAGE BROKERS ACT

        DATE:                            September 12, 2008



Obligation to Provide Form 9 Disclosure

Under section 17.1 of the Mortgage Brokers Act (the “Act”), a mortgage broker who:

        •     arranges a mortgage in which another person is to be the lender;

        •     arranges the sale of a mortgage lender’s interest in a mortgage to a new lender; or

        •     is a mortgage lender and sells its interest in the mortgage to another person who will be
              the new mortgage lender;

must provide the mortgage lender with an Investor/Lender Disclosure Statement in Form 9 with
the attachments listed in Form 9.

The Form 9 must be provided to the mortgage lender prior to any mortgage funds being released
from trust, or if there are no mortgage funds being held in trust, prior to the mortgage funds being
advanced to the borrower.

Exemptions from Obligation to Provide Form 9 Disclosure

A mortgage broker is exempt from the obligation to provide a mortgage lender with a Form 9 if
the mortgage lender is a financial institution or another sophisticated person (*see complete list
of sophisticated persons below).
In addition, a mortgage broker is exempt from the obligation to provide a mortgage lender with a
Form 9 if:

    •       the mortgage is part of a pool of mortgages and an interest in the pool is being offered by
            the mortgage broker as a security as defined in the Securities Act, and fully guaranteed
            by the government of Canada or by a province of Canada; or
                                                                                                    …/2
MB 08-003                                 -2-                             September 12, 2008
       • an offering memorandum or a prospectus has been provided to the mortgage lender in
          accordance with the requirements of the Securities Act.


     *A sophisticated person is defined to mean:

        (a)    a government of Canada or any province of Canada or a crown corporation or agency of a
               Canadian federal or provincial government;

        (b)    a municipal corporation, public board, or commission in Canada,

        (c)    a savings institution;

        (d)    a cooperative credit society as defined in the Cooperative Credit Associations Act (Canada) or a
               savings and credit union, federation or confederation as defined in the Savings and Credit Unions
               Act (Quebec);

        (e)    the Business Development Bank of Canada;

        (f)    a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions
               (Canada) or a provincial pension supervisory authority;

        (g)    an insurance company;

        (h)    a trust company or insurer authorized under the laws of Canada or of a province of Canada other
               than British Columbia to carry on business in Canada or that province;

        (i)    a mortgage broker acting as principal;

        (j)    a subsidiary, as defined by the Business Corporations Act, of a person referred to in paragraph
               (a) to (i);

        (k)    a person registered under the Securities Act or the securities legislation of another province in
               Canada as an investment dealer or equivalent, acting as principal or as an agent or trustee for
               accounts that are fully managed by it;

        (l)    a person registered under the Securities Act or the securities legislation of another province in
               Canada as a portfolio manager or equivalent, acting as principal or as an agent or trustee for
               accounts that are fully managed by it;

        (m) a mutual fund or non-redeemable investment fund, if the investment portfolio of the fund is
            managed by a person that is registered under the Securities Act or the securities legislation of
            another province in Canada as a portfolio manager or equivalent; or

        (n)    a person or trust that acquires mortgages or interests in mortgages for the purpose of offering, as
               a security as defined in the Securities Act, interests in a pool of those mortgages or interests in
               mortgages.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –
                                 Registrar of Mortgage Brokers            INFORMATION
                                            nd
                                 1200 - 13450 102 Avenue
                                 Surrey, BC V3T 5X3
                                 Phone: 604-953-5300
                                 Fax: 604-953-5301
                                                                          BULLETIN


           BULLETIN NUMBER:               MB 07-007

           TITLE:                         PROVIDING CONFLICT OF INTEREST
                                          DISCLOSURE

           LEGISLATION:                   MORTGAGE BROKERS ACT

           DATE:                          August 24, 2007


All mortgage broker registrants have an obligation to provide disclosure of their interests to borrowers
and lenders. Form 10 is the Conflict of Interest Disclosure Statement prescribed pursuant to sections
17.3 and 17.4 of the Mortgage Brokers Act. Those sections require every mortgage broker, who acts
in a mortgage transaction in which the mortgage broker, or any associate or related party of the
mortgage broker, has or may acquire a direct or indirect interest, to disclose that interest to the
borrower or lender, as the case may be.

Associate is defined in the Regulations to include submortgage brokers employed by the
mortgage broker.

A disclosable interest exists where a mortgage broker or an associate of the mortgage broker has a
personal or business interest in a mortgage transaction. Furthermore, such an interest may be a
conflict of interest. It may be impossible for mortgage brokers or their associates to completely avoid
conflicts, and being in a conflict of interest does not necessarily mean that the mortgage broker or an
associate has engaged in any wrong doing. However, conflicts may affect the broker’s judgment or
his or her sense of duty to act in the best interests of the client. All interests must therefore be
disclosed to the client.

Mortgage brokers should ensure that the Form 10 clearly explains the nature of the interest. We
have found that many mortgage brokers complete Form 10’s in a perfunctory manner, using
boilerplate language which may have little meaning to the borrower or lender.

Examples of situations where a mortgage broker may have a disclosable interest include the
following:

   •   acting in multiple roles for borrowers, such as mortgage brokers who are also a realtor,
       insurance agent, appraiser, or notary in the same transaction;

   •   arranging a mortgage for a borrower in which a submortgage broker of the mortgage broker is
       the lender or has an interest in the transaction as a shareholder or director of a corporate
       lender or as the spouse of a lender;

   •   arranging a mortgage for a borrower and funding the same mortgage as a lender;
                                                                                                   …/2
MB 07-007                                                   -2-                                                  August 24, 2007

    •   arranging a mortgage for a borrower where the lender is related, either directly or indirectly to
        the mortgage broker;

    •   arranging a mortgage for a borrower where the lender provides any kind of compensation,
        including volume bonuses, points and other rewards, to the mortgage broker; and

    •   accumulating points from a lender by not providing a borrower with the lowest interest rate in
        order to bank points and eventually use them to benefit other borrowers.

Please be aware that the above list is not exhaustive, and other situations may exist where a
disclosable interest arises in a mortgage transaction. Mortgage brokers should always act cautiously
and disclose all potential interests, even if it does not appear to be a conflicting interest or the interest
appears to be remote.

Subsections 17.3 (2) (c) and 17.4 (2) (c) state that the Form 10 must be dated and signed by the
mortgage broker. The Mortgage Brokers Act Regulations require that the Form 10 be given to a
borrower at the earliest opportune time, and in any event, before the borrower signs the mortgage or
any ancillary agreement with the broker or lender, including an agency agreement with the broker that
commits the borrower to the mortgage transaction. The Regulations also require that the Form 10 be
given to a lender prior to the lender’s funds being released from trust on the direction of the lender, if
the funds are held in trust, and if they are not held in trust, prior to the advancement of the funds by
the lender.

Mortgage brokers must retain a copy of every Conflict of Interest Disclosure Statement for a period of
at least seven years.
Any questions about completing or delivering the Form 10 can be addressed to the Registrar’s Staff.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –




                                                                                                                               …../3
                                 Registrar of Mortgage Brokers            INFORMATION
                                            nd
                                 1200 - 13450 102 Avenue
                                 Surrey, BC V3T 5X3
                                 Phone: 604-953-5300
                                 Fax: 604-953-5301
                                                                          BULLETIN


           BULLETIN NUMBER:               MB 06-001

           TITLE:                         NEW BORROWER DISCLOSURE
                                          REQUIREMENTS UNDER THE BUSINESS
                                          PRACTICES AND CONSUMER PROTECTION
                                          ACT

           LEGISLATION:                   MORTGAGE BROKERS ACT
                                          BUSINESS PRACTICES AND CONSUMER
                                          PROTECTION ACT

           DATE:                          June 30, 2006


 NEW BORROWER DISCLOSURE REQUIREMENTS UNDER THE BUSINESS PRACTICES AND
                      CONSUMER PROTECTION ACT

As of July 1, 2006, the provisions in the Mortgage Brokers Act which require mortgage brokers to
provide a Form 6 Disclosure Statement to borrowers shall be repealed.

The Form 6 will be replaced by new disclosure requirements contained in Part 5 of the Business
Practices and Consumer Protection Act (the “Act”), which will come into force on the same date. The
new provisions require that disclosure be given by mortgage brokers and lenders to individuals who
borrow for primarily personal, family, or household purposes, regardless of whether the broker or
lender is charging additional fees or expenses.

A Disclosure Statement, Notice or Statement of Account must be given to the borrower:

   •   Two days prior to the borrower incurring an obligation under a credit agreement, unless the
       two-day period is waived;

   •   Once every 12 months if the interest rate is floating;

   •   Within 30 days of any one percent or greater increase in the interest rate for credit agreements
       with fixed interest rates subject to change;
       Within 30 days of the borrower missing a payment or a default charge being imposed by the
       lender if the outstanding principal changes as a result of the default and the total amount of the
       payments which the borrower is scheduled to make over a payment period does not cover the
       interest that will accrue in the payment period;

   •   Within 30 days after an amendment to the credit agreement;


                                                                                                    …/2
MB 06-001                                  -2-                                        June 30, 2006
   • Within 21 days prior to the end of a mortgage term, if the mortgage is being renewed; and

     •   Every month if the loan is for open credit.

The Act does not contain prescribed disclosure forms, notices or statements of account. It does
however, prescribe required content in sections 84 to 92 of the Act. The Act and other information is
available on the FICOM website at http://www.fic.gov.bc.ca
All mortgage brokers must ensure that their submortgage brokers are aware of the new requirements.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –




                                                                                                                               …../3
                      Ministry of Finance
                      Financial Institutions Commission
                      1900 - 1050 West Pender Street
                      Vancouver, BC V6E 3S7
                      Phone: 604-660-2947
                                                                 BULLETIN
                      Fax: 604-660-3170


       ● Superintendent of Financial Institutions           ● Credit Union Deposit Insurance Corporation of British Columbia
       ● Registrar of Mortgage Brokers                      ● Superintendent of Real Estate
       ● Superintendent of Pensions



                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                             1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                           Phone: 604-953-5300
                                            Fax: 604-953-5301

       BULLETIN NUMBER:                             MB 04-004

       TITLE:                                       CONFLICT OF INTEREST

       LEGISLATION:                                 MORTGAGE BROKERS ACT

       DATE:                                        APRIL 2004

It has come to the attention of the Registrar of Mortgage Brokers (the “Registrar”) that some
lenders now offer “points” or “bonus” plans to submortgage brokers referring deals to them. In
some cases, we understand that the lender will permit the submortgage broker to “cash out” the
points in the bank and take the equivalent accumulated cash value. Basically, the program
works in the following fashion:

•   A submortgage broker will receive an application for a mortgage from Borrower A. The
    submortgage broker will forward the application to the lender who offers the “points
    program.” The lender will approve the mortgage and provide the submortgage broker with a
    range of interest rates for Borrower A. Typically, there will a range of 60 to 75 basis points
    in the interest rates. In this case, let’s say the range is between 4.00% and 4.60%.

•   The submortgage broker then selects the rate he believes his client, Borrower A, will accept.
    In this case, let’s say the rate was 4.5%. Borrower A reviews the offer from the lender, i.e.
    with an interest rate of 4.50%, and accepts. The submortgage broker “banks” (with the
    lender) the points not used for Borrower A (i.e. 50 basis points) to a maximum dollar
    amount.

•   The submortgage broker then receives an application for a mortgage from Borrower B. The
    submortgage broker forwards the application to the same lender who offers the “points
    program.” The lender approves the mortgage and provides the submortgage broker with a
    range of interest rates for Borrower B. In this case, let’s say the range is between 4.50%
    and 5.00%.

•   The submortgage broker knows that Borrower B cannot or will not accept that rate, so the
    submortgage broker uses the points banked from Borrower A to buy down the interest rate
    of Borrower B to a rate lower than 4.50%.

In this scenario, the submortgage broker has used the points from Borrower A to reduce the
interest rate of another borrower, namely Borrower B, without Borrower A being aware of the

                                                                                                                         …./2
MB 04-004                                         -2-                                  April 2004

situation. In fact, the submortgage broker may accumulate the points from several borrowers
before using them to the benefit of a borrower; or before the submortgage broker takes the cash
equivalent for his/her own benefit.

CONFLICT OF INTEREST

The Registrar considers the banking of points or bonuses to be a conflict of interest that must be
disclosed to any borrower to whom the lowest interest rate offered by the lender is not given (i.e.
points are accumulated by the submortgage broker) on the Form 10 provided in the Mortgage
Brokers Act Regulations. In the above-noted scenario, Borrower A would be entitled to the
disclosure.

The Mortgage Brokers Act states:

“Conflict of interest — disclosure to borrowers for mortgages on land in B.C.”

     “17.3 (1) Every mortgage broker who acts in a mortgage transaction in which there is an
     interest as described in subsection (2) (a) must, within the prescribed time, provide to every
     person who is a borrower under a mortgage in that transaction a written disclosure
     statement that meets the requirements of subsection (2).
     (2) The disclosure statement referred to in subsection (1) must
          (a) disclose any direct or indirect interest the mortgage broker or any associate or
          related party of the mortgage broker has or may acquire in the transaction,
          (b) include the prescribed contents and be accompanied by any documents that are
          prescribed,
          (c) be dated and signed by the mortgage broker, and
          (d) contain disclosure that is true, plain and not misleading of the matters in the
          prescribed contents referred to in paragraph (b).”

“Retention and filing of disclosure statements”

     “17.5 A mortgage broker required to provide a disclosure statement under section 17.3
     or 17.4 must retain a copy of the disclosure statement for a period of at least 7 years.”

In any case where a borrower is not offered the lowest interest rate in the range offered
by the lender, but is given one from within the range, and the submortgage broker banks
the points to use in the future, the submortgage broker is in a conflict of interest and
must disclose that conflict to the borrower.

Therefore, if any mortgage broker permits its submortgage broker employees to participate in a
points banking program, the mortgage broker must ensure that the submortgage brokers are
providing disclosure, by way of Form 10, to any borrower who does not receive the lowest
interest rate offered by the lender to that borrower. Further, the mortgage broker must ensure
that a copy of the Form 10 is retained for 7 years.

Regulatory action will be taken against any registrant who fails to comply with the disclosure
requirements of the Mortgage Brokers Act. This includes any registrant that participates in
these “points or bonus programs”. Please note it is an offence under section 22(1) of the
Mortgage Brokers Act not to provide conflict of interest disclosure and not to retain the forms.

                                                  -30-
MB 04-004.doc
                                    Registrar of Mortgage Brokers                INFORMATION
                                               nd
                                    1200 - 13450 102 Avenue
                                    Surrey, BC V3T 5X3
                                    Phone: 604-953-5300
                                    Fax: 604-953-5301
                                                                                 BULLETIN


             BULLETIN NUMBER:                MB 07-003

             TITLE:                          MAXIMUM FEES FOR PROVIDING EXECUTED
                                             MORTGAGE DISCHARGES AND OTHER
                                             COSTS

             LEGISLATION:                    BUSINESS PRACTICES AND CONSUMER
                                             PROTECTION ACT

             DATE:                           January 31, 2007


This Bulletin clarifies the maximum fee that can be charged by lenders or their administrators for providing
borrowers with executed mortgage discharges and other costs that can be charged to borrowers.

We understand that some mortgage lenders or mortgage administrators who act for other lenders, may be
charging borrowers in excess of $75 to provide executed mortgage discharges.

Please be aware that under sections 72(3) of the Business Practices and Consumer Protection Act (“BPCPA”),
and section 16 of the Regulations, the maximum fee for providing an executed discharge is $75. Please also
be aware that section 207(5) of the BPCPA provides that:

       Section 72 [borrowers entitled to mortgage discharge] applies to the discharge of all mortgages,
       whether the mortgage for which the discharge is being furnished is entered into before, on or after the
       coming into force of Part 5.

This means that mortgages which were created prior to the coming into force of Part 5 of the BPCPA are also
subject to the maximum discharge fee. If you charge any borrower in excess of $75 to provide an executed
mortgage discharge, regardless of when the mortgage was entered into, you have breached section 72 of the
BPCPA.

In addition, under section 75 of the BPCPA a credit grantor must not impose, under a credit agreement, any
default charges other than the following:

       (a)   court ordered costs incurred in collecting or attempting to collect a debt;

       (b)   reasonable charges in respect of costs, including legal costs, incurred in realizing a security
             interest or protecting the subject matter of a security interest after default; and

       (c)   reasonable charges that reflect costs incurred by the credit grantor because a cheque or other
             payment instrument given by the borrower to the credit grantor was dishonored.

Section 75 therefore, prohibits lenders from charging borrowers, who default on mortgage payments, NSF fees
which unreasonably exceed the actual cost incurred by the lender to process the default. For example, if a
bank charges a lender $25 to process a returned cheque, it would be unreasonable for the lender to then
assess the borrower with a $250 charge for the default.


                                                                                                               …/2
MB 07-003                                                   -2-                                                January 31, 2007

Please note that it is proper to separate the discharge fee and other costs from the cost to payout the
mortgage in the payout statement. It is improper to request only a lump sum payout figure which fails to itemize
charges and other costs, as this can have the effect of hiding charges, such as the discharge fee.

The Registrar of Mortgage Brokers may seek to impose regulatory penalties against any mortgage broker who
breaches sections 72 and 75 of the BPCPA.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                                               - 30 –

MB 07-003-Feb 16.doc




                                                                                                                               …../3
                                Registrar of Mortgage Brokers            INFORMATION
                                           nd
                                1200 - 13450 102 Avenue
                                Surrey, BC V3T 5X3
                                Phone: 604-953-5300
                                Fax: 604-953-5301
                                                                         BULLETIN


           BULLETIN NUMBER:              MB 07-005

           TITLE:                        DUE DILIGENCE OF MORTGAGE BROKERS
                                         WHO ARRANGE STATED INCOME
                                         MORTGAGES

           LEGISLATION:                  MORTGAGE BROKERS ACT

           DATE:                         July 26, 2007



Due Diligence of Mortgage Brokers Who Arrange Stated Income Mortgages
Self employed borrowers may qualify for a stated income mortgage by relying on the income stated in
their mortgage application or in a separate declaration form. These borrowers usually do not have to
prove the value of their income with supporting documentation, such as income tax returns or bank
statements. However, they may have to document the source of their income by providing a
business license to the mortgage broker or lender. Stated income mortgages are intended for self
employed persons, who may write off significant amounts of their gross income with business
expenses. The income they are asked to declare is neither their gross income nor their net income,
but a “reasonable” estimate of their actual income, which may fall some where in between their gross
and net income. It is seldom made clear to borrowers how they are to determine what a reasonable
estimate of their actual income is. However, with stated income mortgages, lenders agree not to
attempt to verify an applicant’s reasonable estimate of actual income stated on his or her application.
This contrasts with full documentation mortgages, which usually require borrowers to provide
evidence of their income for each of the prior two years by producing income tax assessments.
The lack of supporting documentation required for stated income mortgages may lead some
borrowers to provide misleading information about the source of their income or the amount of their
income. Some mortgage brokers have reported encountering evidence that borrowers have obtained
municipal business licenses for the sole purpose of qualifying for a stated income mortgage. In
addition, some mortgage brokers have enquired about whether it is acceptable for borrowers to
simply fill in the number representing their stated income which is sufficient to qualify them for the
mortgage they are seeking, as some lenders have indicated that this is acceptable.
Please be aware that mortgage brokers must undertake reasonable due diligence to ensure that the
information being passed on to lenders is accurate and not misleading, even if it appears that the
lender encourages or tolerates misleading statements from borrowers about the source or amount of
income on stated income applications. Exercising due diligence for stated income mortgages would
require mortgage brokers to ensure that the borrower knows to state only truthful information in the
mortgage application. Remember that if a stated income mortgage results in default or foreclosure,
the lender may look for evidence of fraud. If there are any misrepresentations about the amount or

                                                                                                  …/2
MB 07-005                                    -2-                                       July 26, 2007
source of income, lenders may place responsibility for the misrepresentations on the mortgage broker
who submitted the application, while borrowers may blame the mortgage broker for counseling them
to provide false information.
In addition, the Registrar of Mortgage Brokers may seek to impose regulatory penalties against any
mortgage broker who does not exercise due diligence in ensuring that information contained in stated
income mortgages is accurate and not misleading. For further information about this matter, please
contact the staff of the Registrar of Mortgage Brokers at 604-953-5300.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –




                                                                                                                               …../3
                                          Registrar of Mortgage Brokers                        INFORMATION
                                                     nd
                                          1200 - 13450 102 Avenue
                                          Surrey, BC V3T 5X3
                                          Phone: 604-953-5300
                                          Fax: 604-953-5301
                                                                                               BULLETIN


              BULLETIN NUMBER:                      MB 07-001

               TITLE:                                DUE DILIGENCE REQUIRED FOR MORTGAGE
                                                     BROKERS HIRING SUBMORTGAGE
                                                     BROKERS

               LEGISLATION:                          MORTGAGE BROKERS ACT

               DATE:                                 January 4, 2007


The Registrar of Mortgage Brokers requires that applicants for mortgage broker and submortgage
broker registration shall be of good business reputation. The Registrar’s staff reviews all registration
applications in order to assess the applicant’s suitability for registration. In particular, the staff review
the applicant’s disclosure of criminal charges and convictions, unpaid civil judgments and pending
litigation, employment history, and status and disciplinary history with regulatory bodies. The
Registrar expects that applicants for registration be forthright and truthful in disclosing all matters. The
disclosure of any of these matters is not necessarily a bar to registration. However, the failure to fully
disclose the matters asked on the application or answer questions truthfully may be considered a
serious matter which can affect the individual’s suitability for registration.

The application for submortgage broker registration requires that the Designated Individual certify that
he or she is satisfied through personal knowledge or from inquires that the applicant has a good
business reputation and the qualifications required to be a mortgage broker. Mortgage brokers who
sponsor individuals for submortgage broker registration must therefore exercise due diligence to
determine the experience, qualities and business reputation of the applicant. This may require the
Designated Individual to interview the applicant, contact references, verify the applicant’s employment
history, or ensure that full details of an applicant’s criminal record or outstanding civil proceedings and
judgments are attached to the application and are discussed with the applicant.


The Registrar may take regulatory action against mortgage brokers who sponsor applicants for
registration if they fail to exercise due diligence to ascertain the experience, qualities and business
reputation of the applicant.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –


                                                                                                                                …/2
                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                       1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                     Phone: 604-953-5300
                                      Fax: 604-953-5301

                                                                                                November 2004

         OPEN LETTER FROM THE REGISTRAR OF MORTGAGE BROKERS


Over the last several months, considerable media coverage has been given to the
increasing problem of marijuana grow operations (“grow-ops”) in the Province and, in
particular, the Lower Mainland. Grow-ops have become a major source of concern for
many communities resulting in public meetings aimed at trying to address problems
associated with their presence. Grow-ops negatively affect neighbourhoods directly
through the criminal element that they bring, and the potential for increased violence
within the area, and indirectly as a result of their impact on property values.

Properties purchased for the purpose of using them as grow-ops often have inflated
property values as a result of purchasers’ willingness to pay a premium over and above
the market value of the property to ensure a quick possession date. This in turn inflates
the value of surrounding properties, and creates false market values. Subsequently
when the grow-op is abandoned and it becomes known that the property was used as a
grow-op it is often difficult to re-sell the property to a legitimate purchaser, resulting in a
significant reduction in both the value of the property and the value of property in the
neighbourhood.

Increasingly, we are finding that many of the houses being identified as grow-ops are
high-end properties in up-scale neighbourhoods. Mortgages are being obtained on
these properties using fictitious purchasers and/or false employment and down payment
information in the application. The proliferation of these types of transactions is
becoming an increasing concern, particularly in view of the potential for adverse effects
on the mortgage broker industry and those financial institutions that are funding the
mortgages on these properties.

During our investigation of these cases, we are finding that in a significant number of
transactions, little, if any, due diligence has been carried out to ensure the accuracy of
the information provided on the mortgage application. Lenders appear to be relying
heavily on the information being sent to them by either the applicant, or the mortgage
broker referring the mortgage.


Financial      • Superintendent  of Financial Institutions   Mailing Address:                Web Address:
Institutions   • Superintendent  of Pensions                 1900 -1050 West Pender Street   www.fic.gov.bc.ca
               • Superintendent of Real Estate               Vancouver BC V6E 3S7
Commission
               • Registrar of Mortgage Brokers               Telephone: 604 660-2947
               • Credit Union Deposit Insurance              Facsimile: 604 660-3170
                 Corporation of British Columbia
                                                                                    …../2
                                           -2-


Mortgage brokers on the other hand are saying that it is not their responsibility to verify
the information being passed on to them by applicants, and that it is up to the lenders to
ensure the information is accurate. This office takes the position that mortgage brokers
do have a responsibility to ensure the accuracy of information provided by the
applicant. If mortgage brokers do not verify any of the information they are forwarding
to lenders, then mortgage brokers should advise the lenders in writing that none of the
information has been verified.

While no one is suggesting that mortgage brokers need to conduct in-depth
investigations of every transaction that they process, some due diligence must be
undertaken to ensure that the information being passed on to lenders has been verified.
Applications containing errors or omissions need additional verification and under no
circumstances should brokers be referring to a lender, applications that have been
shown by another lender as containing false or inaccurate information.

It is essential that mortgage brokers are aware of the issues and concerns regarding the
financing of properties, which may ultimately be used for illegal purposes. The early
detection and reporting of fraudulent mortgage applications is an essential tool in
combating the problem of grow-ops and the further funding of illegal activities. I would
encourage all of you to take the time to ensure that you are aware of the red flags
associated with the detection of fraudulent mortgage transactions and money
laundering, and to report suspected cases to the authorities as soon as possible.

In view of the concerns this issue is causing not only in the mortgage broker industry but
amongst lenders and the general public, I believe it is necessary to confirm this office’s
position on the subject of misleading information. As such, I am withdrawing Bulletin
MB 96-001 and issuing a new Bulletin MB 04-005 that I am confident will provide clearer
direction to mortgage brokers regarding their responsibilities in the verification process.

Please do not hesitate to call Jay Mitchell, Deputy Registrar of Mortgage Brokers at 604
660-0108 or Ken Fraser, Executive Director of Investigations at 604 660-2508 should
you have any questions or concerns regarding this matter.


LR04-1239-ljm-dt.doc
                       Ministry of Finance
                       Financial Institutions Commission
                       1900 - 1050 West Pender Street
                       Vancouver, BC V6E 3S7
                       Phone: 604-660-2947
                                                                   BULLETIN
                       Fax: 604-660-3170


        ● Superintendent of Financial Institutions            ● Credit Union Deposit Insurance Corporation of British Columbia
        ● Registrar of Mortgage Brokers                       ● Superintendent of Real Estate
        ● Superintendent of Pensions
       Please Note: As of April 2005 the Financial Institutions Commission of BC address changed to:
                             1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                                     Phone: 604-953-5300
                                                      Fax: 604-953-5301

        BULLETIN NUMBER:                             MB 04-005

        TITLE:                                       MISLEADING INFORMATION

        LEGISLATION:                                 MORTGAGE BROKERS ACT

        DATE:                                        OCTOBER 2004

Increasingly this office is being made aware of occasions where mortgage brokers are failing to
verify client information that is being passed on to lenders. As a result, instances where lenders
are receiving misleading or false information is becoming more frequent. Occurrences of this
nature can tarnish the reputation and professional image mortgage brokers have within the
lending community and amongst the general public. As a result of our investigations into these
incidents disciplinary action has been taken against mortgage brokers in a number of occasions.
In addition, charges of forgery, uttering a forged document, and obtaining credit by false
pretences have been laid. We are not suggesting that most mortgage brokers are conducting
their business in this manner, but rather we wish to ensure that the few who act improperly are
identified and dealt with promptly and appropriately.

Mortgage brokers need to recognize that lenders rely on the information they receive regarding
potential borrowers. Mortgage brokers cannot say that it is not their responsibility to verify the
information being given to them during the application process. Lenders indicate they assume
that mortgage brokers have verified the information before forwarding it on. This office takes
the position that a mortgage broker has a duty to ensure the information being sent to a lender
has been verified.

Although no one is suggesting that mortgage brokers need to conduct in-depth investigations of
every transaction that they process, reasonable due diligence must be undertaken to ensure
that the information being passed on to lenders is accurate. Applications containing errors or
omissions need additional verification and under no circumstances should brokers be referring
applications that have been shown by another mortgage broker or lender to contain false or
inaccurate information. If mortgage brokers do not verify the information they are forwarding to
lenders, then mortgage brokers should advise the lenders in writing that none of the information
has been verified.

Your cooperation and diligence will result in the mortgage broker industry continuing to maintain
a professional and respected image in the community.

If you have any questions with respect to the contents of this Information Bulletin, please
contact Ms. Jay Mitchell, Deputy Registrar of Mortgage Brokers at 604 953-5330

                                                            -30-
MB 04-005.doc
                                                                          June 11, 2004




Dear Sir/Madam:

Re:                                            Submortgage Brokers

Our records indicate that you are the individual responsible for the operation of a mortgage
broker registered under the Mortgage Brokers Act (the “Act”). I am writing to you to clarify a
matter with respect to the manner in which submortgage brokers are paid.

The Act is very clear in establishing that submortgage brokers are “employed” by mortgage
brokers to engage in brokering activities. Individuals are employed, companies are not. I do not
register companies as submortgage brokers; only individuals are registered as submortgage
brokers. Therefore, a mortgage broker must pay the individuals employed by that mortgage
broker.

Many mortgage brokers feel that they can pay the commissions owed to a submortgage broker
to a company owned by a submortgage broker because the submortgage broker is an
independent contractor. However, this does not conform to the legislation, as the company is
not registered under the Act. And the submortgage broker is not an independent contractor but
an employee.

Under section 21, a submortgage broker must not carry on the business of a mortgage broker
unless registered under the Act; and a mortgage broker must not employ as a submortgage
broker anyone who is not registered under the Act. The definition of a mortgage broker includes
any person who in one year receives an amount of $1,000 or more in fees or other
consideration, excluding legal fees, for arranging mortgages for other persons. Therefore, a
company that is not registered and receives commissions would be engaged in unregistered
activity. This is an offence under the Act.

In addition, many mortgage brokers are now selling credit insurance to their borrowers. Under
the Financial Institutions Act and Regulations, licensing as an insurance salesperson is not
required by a person whose only activity as an insurance salesperson is in connection with
credit insurance sold incidentally to the granting of credit by, or arranged by, that person or that
person’s employer. Therefore, a submortgage broker who is selling credit insurance, through a
group policy arranged by the mortgage broker, must be an employee of the mortgage broker in
order to market the insurance product. Insurance commissions must be paid to the registered
individual, not a company owned by the submortgage broker. Any other arrangement would be
an offence under the Financial Institutions Act and Regulations.


                                                                                                                  …../2



Financial       • Superintendent  of Financial Institutions   Mailing Address:                Web Address:
Institutions    • Superintendent  of Pensions                 1900 -1050 West Pender Street   www.fic.gov.bc.ca
                • Superintendent of Real Estate               Vancouver BC V6E 3S7
Commission
                • Registrar of Mortgage Brokers               Telephone: 604 660-2947
                • Credit Union Deposit Insurance              Facsimile: 604 660-3170
                  Corporation of British Columbia
June 11, 2004
Page 2

I recently became aware of a situation wherein a mortgage broker had four employees. The
senior submortgage broker had a company and the mortgage broker had been paying that
submortgage broker’s commission to his company for some time. The three other submortgage
brokers were new to the industry and according to the mortgage broker, worked with the senior
submortgage broker on deals. The mortgage broker started paying the commissions owing to
the three junior submortgage brokers to the company owned by the senior submortgage broker.
That company was engaged in unregistered mortgage brokering and the registered mortgage
broker facilitated the activity by agreeing to pay the commissions owing to the other three
submortgage brokers to the senior submortgage broker’s company when he should have paid
the submortgage brokers directly.

I am aware that some submortgage brokers have now become mortgage brokers and entered
into co-brokering agreements with their former mortgage broker employer. The new mortgage
broker has a separate company name; has a separate registered address and address for
service; maintains its own books and records, including disclosure statements; files an annual
financial filing; and advertises under its corporate name. But it co-brokers deals through the
former employer and receives the benefits of the volume commissions the original mortgage
broker has achieved over time. This arrangement meets the requirements of the Act.

Mortgage brokers are also responsible for retaining copies of the disclosure statements issued;
for ensuring that all advertising has the name of the registered mortgage broker in the
advertisement; for maintaining adequate books and records, including financial records for the
business; and for ensuring that all trust funds are handled in accordance with the requirements
of the Conditions of Registration and the Regulations. Individual mortgage brokers who permit
their submortgage brokers to “hang” their registrations and do not supervise the activities of
their employees will find that ultimately it is the mortgage broker who is responsible for
compliance with the Mortgage Brokers Act.

I trust this clarifies the requirements of the Act for you.

                                                              Yours truly,




                                                              W. Alan Clark
                                                              Chief Executive Officer and
                                                               Registrar of Mortgage Brokers
                                                              Financial Institutions Commission
                                                               INFORMATION
                                                               BULLETIN

   BULLETIN NUMBER:                     MB 10-002

   TITLE:                               RELICENSING EDUCATION FOR
                                        MORTGAGE BROKERS

   LEGISLATION:                         MORTGAGE BROKERS ACT

   DATE:                                MARCH 2010



      The Registrar of Mortgage Brokers (the “Registrar”) is launching a new
      relicensing education program in May of 2010 which will be delivered by
      the Mortgage Brokers Institute of British Columbia (the “MBIBC”). The
      program will be offered in various formats, including both in-person and
      online formats.

      It is important for mortgage brokers to keep current with regulatory
      changes, legislative amendments, new compliance issues, risk reduction
      techniques, changes in industry best practices and emerging issues
      affecting industry members and consumers. The most effective vehicle to
      accomplish these goals, and to ensure that the knowledge level of every
      industry member is raised, is through mandatory relicensing education.
      Both the Registrar and other jurisdictions in Canada which regulate
      mortgage brokers consider “relicensing education” to be an essential
      practice standard.

      Under section 4 of the Regulations to the Mortgage Brokers Act, the
      Registrar has the authority to specify the courses which qualify a person to
      obtain mortgage broker or submortgage broker registration or to renew
      registration in British Columbia. Accordingly, pursuant to section 4, the
      Registrar will now require all individual persons who are registered as
      mortgage brokers or submortgage brokers to take relicensing education
      as set out below:

      1. If a registrant’s renewal is due between January 31, 2011 and
         December 31, 2011, in order to qualify for registration renewal, he or


Registrar of Mortgage Brokers                                      1200 - 13450 102nd Avenue
                                                                          Surrey, BC V3T 5X3
                                                                     Telephone: 604-953-5300
                                                                      Facsimile: 604-953-5301
                                                                       http://www.fic.gov.bc.ca
MB 10-002                                         -2-                                 MARCH 2010


           she must take “Regulatory Update for Mortgage Brokers” and one
           course offered by the MBIBC.

       2. If a registrant’s renewal is due on January 1, 2012 or anytime
          thereafter, in order to qualify for registration renewal, he or she must
          take “Regulatory Update for Mortgage Brokers” and three courses
          offered by the MBIBC.


Please refer to the web pages of the Mortgage Brokers Department on the FICOM
website at http://www.fic.gov.bc.ca/ or call the staff of the Registrar at 604-953-5300 for
further information about course offerings and availability.


At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act,
Business Practices and Consumer Protection Act and Regulations. While the comments in a particular
part of an information bulletin may relate to provisions of the law in force at the time they were made,
these comments are not a substitute for the law. The reader should consider the comments in light of the
relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the
comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                  Registrar of Mortgage Brokers             INFORMATION
                                             nd
                                  1200 - 13450 102 Avenue
                                  Surrey, BC V3T 5X3
                                  Phone: 604-953-5300
                                  Fax: 604-953-5301
                                                                            BULLETIN


           BULLETIN NUMBER:                MB09-002 (Replaces MB07-006)

            TITLE:                         EDUCATION REQUIREMENTS FOR
                                           INDIVIDUALS APPLYING FOR
                                           SUBMORTGAGE BROKER OR MORTGAGE
                                           BROKER REGISTRATION

            LEGISLATION:                   MORTGAGE BROKERS ACT

            DATE:                          March 20, 2009


New Individual Applicants

Mortgage broker applicants who are sole proprietors and submortgage brokers applicants must
successfully complete certain courses in order to qualify for registration.

The courses or programs that qualify for mortgage broker or submortgage broker registration are:

       1. Mortgage Brokerage in British Columbia;

       2. a Diploma in Urban Land Economics, or its three core courses:

                 111 Real Property Law & Ethics;
                 121 Foundations of Real Estate Mathematics; and
                 221 Real Estate Finance in a Canadian Context; or

       3. a four year Bachelor of Commerce Degree with a specialization in Real Estate.

Individuals who have successfully completed the course, Mortgage Brokerage in British Columbia must
apply for registration within one year of writing the examination. This is to ensure that recently qualified
applicants build on and solidify their education. However, if an individual has been actively brokering
mortgages on behalf on an entity exempt from registration, such as a savings institution, the one-year
period may be extended.

Examination Challenge Option for Individuals with Experience

Individuals, who have significant experience in the mortgage broker industry, may be permitted to
enroll in an accelerated version of the course, Mortgage Brokerage in British Columbia. The
accelerated challenge program allows individuals to obtain course materials and challenge the
final examination without completing assignments.


                                                                                                       …/2
MB09-002                                        -2-                                         March 20, 2009

To apply for permission to enter the challenge program, individuals must submit a resume outlining their
education and work experience to the Registrar of Mortgage Brokers. Individuals must receive written
confirmation from the Registrar stating that they are eligible to challenge the Mortgage Brokerage in
British Columbia examination prior to their enrolment in the program.

Individuals are only permitted to enroll in the challenge program once, and must challenge the
examination within 18 months of receiving permission from the Registrar. Individuals, who do not
pass the examination or fail to write the examination within 18 months of obtaining permission,
must enroll in the full course, successfully complete the assignments and pass the examination if
they wish to satisfy the education requirements for mortgage broker registration.

Individual Interprovincial Applicants

Individual applicants for mortgage broker or submortgage broker registration who have been licensed or
registered as a mortgage broker in another province for at least three out of the last five years, or who
have successfully written and passed a qualifying mortgage broker’s prelicensing examination in another
province within the last year may qualify for registration by successfully completing:

       1. any of the three courses or programs listed above; or

       2. the Mortgage Brokerage Inter-Provincial and BC Procedures examination.

Previously licensed or registered Interprovincial applicants seeking to write the Mortgage Brokerage Inter-
Provincial and BC Procedures examination must provide the Registrar of Mortgage Brokers with an
original copy of their licensing history including their disciplinary record.

Interprovincial applicants seeking to write the Mortgage Brokerage Inter-Provincial and BC Procedures
examination who have not been previously licensed, must provide the Registrar with a copy of the course
certificate from a mortgage broker prelicensing course in another province.

Individuals must receive written confirmation from the Registrar stating that they are eligible to write the
Mortgage Brokerage Inter-Provincial and BC Procedures examination prior to their enrolment in the
program.

Individuals who have successfully passed the Mortgage Brokerage Inter-Provincial and BC Procedures
examination must apply for registration within one year of writing the examination. This is to ensure that
recently qualified applicants build on and solidify their education.

Registration Requirements for Applicants who are Currently Licensed as Mortgage Associates or Brokers
in Alberta

An individual applicant for mortgage broker or submortgage broker registration who is currently licensed
as a mortgage associate or broker in Alberta by the Real Estate Council of Alberta may apply for
registration in British Columbia by submitting the following to the Registrar:

   1. for submortgage broker registration: a submortgage broker application for registration with all
      required exhibits and fees.

   2. for mortgage broker registration: a mortgage broker application with all required exhibits and fees.
      Please be aware that in order to qualify for mortgage broker registration, an individual must have at
      least two recent years of licensing history as a mortgage associate or broker in Alberta or
                                                                                                       …/3
MB09-002                                        -3-                                          March 20, 2009
     elsewhere.

   3. an original copy of his or her licensing history and disciplinary record from the Real Estate Council
      of Alberta.

   4. a complete and duly sworn statutory declaration wherein the applicant declares that he or she has
      read and understood:

               the Mortgage Brokers Act, the Mortgage Brokers Act Regulations, Part V of the Business
                Practices and Consumer Protection Act and Disclosure of the Cost of Consumer Credit
                Regulation, and in particular:

                   o     the requirements for providing conflict of interest disclosure, as set out in
                         sections 17.3 to 17.5 of the Mortgage Brokers Act, and sections 13 to 14 of the
                         Mortgage Brokers Act Regulations.

                   o     the requirements for providing investor/lender disclosure, as set out in sections
                         17.1 and 17.2 of the Mortgage Brokers Act, and section 16 of the Mortgage
                         Brokers Act Regulations.

                   o     the requirements for providing cost of credit disclosure, as set out in Part V of the
                         Business Practices and Consumer Protection Act and Disclosure of the Cost of
                         Consumer Credit
                         Regulation.

                   o     the prohibition against making false statements, as set out in section 14 of the
                         Mortgage Brokers Act.

                   o     the requirements for providing administration agreements, as set out in section
                         14.1 of the Mortgage Brokers Act.

             all bulletins of the Registrar;

             the Conditions of Registration; and

             any other information posted by the Registrar.

Applicants With Prior Real Estate Services Education

Individual applicants who have successfully completed a former real estate services course and
examination from the Sauder School of Business within the last year, who have been licensed with the BC
Real Estate Council for at least three out of the last five years, or who are currently licensed with the BC
Real Estate Council may qualify for registration by successfully completing:

       1. any of the three courses or programs listed under “New Individual Applicants”; or

       2. the Mortgage Brokerage Supplemental Course.

Persons who are currently licensed with the BC Real Estate Council or who have completed former real
estate services education from the Sauder School of Business within the past year may enrol directly in
the Mortgage Brokerage Supplemental Course.

                                                                                                         …/4
MB09-002                                                    -4-                                                    March 20, 2009

Persons who have been licensed with the BC Real Estate Council for at least three out of the last five
years must receive written confirmation from the Registrar stating that they are eligible to enrol in the
Mortgage Brokerage Supplemental Course prior to their enrolment in the program.

Individuals who have successfully completed the Mortgage Brokerage Supplemental Course must apply
for registration within one year of writing the examination. This is to ensure that recently qualified
applicants build on and solidify their education. However, if an individual has been actively brokering
mortgages on behalf on an entity exempt from registration, such as a savings institution, the one-year
period may be extended.

Former Registrants Who Wish to Reactivate Their Registration

Individuals who are not currently registered, but have been registered as a mortgage broker or
submortgage broker within the last five years, may apply to reactivate their registration without retaking
any of the qualifying courses or programs. If a former registrant seeking reactivation has been actively
brokering mortgages on behalf of an entity exempt from registration, such as a savings institution, the five-
year period may be extended.

Course Information

All courses and programs listed above are offered by the University of British Columbia.                                     Further
information on the courses or programs may be obtained from:

        Real Estate Division
        Sauder School of Business
        202 – 2053 Main Mall
        University of British Columbia
        Vancouver, British Columbia V6T 1Z2
        Telephone Number: (604) 822-8444        Toll Free: 1-888-776-7733
        Web: http://www.realestate.ubc.ca/mortgages
               E-mail: info@realestate.sauder.ubc.ca

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                               - 30 –
                                                                   INFORMATION
                                                                   BULLETIN

   BULLETIN NUMBER:                      MB 09-005

   TITLE:                                NEW POWERS OF THE REGISTRAR OF
                                         MORTGAGE BROKERS – AMENDMENTS TO
                                         THE MORTGAGE BROKERS ACT

   LEGISLATION:                          MORTGAGE BROKERS ACT

   DATE:                                 NOVEMBER 2009



Amendments to the Mortgage Brokers Act (the “Act”) which broaden the enforcement
powers of the Registrar took effect on October 29, 2009. In particular, under the new
amendments, the Registrar will have the power to:

             Order a registered person to cease an activity or carry out specified
              remedial actions – this enables the Registrar to provide more flexible and
              effective enforcement options when dealing with current registrants;

             Order a formerly registered person to carry out specified remedial actions
              or pay an administrative penalty – this enables the Registrar to take
              enforcement measures against a person or entity that terminates their
              registration in order to avoid discipline;

             Suspend or cancel a person's registration, or order a person to cease an
              activity or carry out specified remedial actions if the person has been
              convicted of an offence or contravened laws in respect of mortgage
              brokerage, real estate, insurance or securities – this enables the Registrar
              to take enforcement action against a registrant who has been disciplined
              in another jurisdiction by a regulatory authority;

             Order a person who should be or should have been registered, but is or
              was not, to cease an activity, carry out specified remedial actions or pay
              an administrative penalty – this enables the Registrar to issue cease and
              desist orders against an unregistered person or entity that is engaging in
              unregistered activity; and

             Make certain orders without a hearing if the registrar considers the time it
              would take for a hearing would be prejudicial to the public interest.



Registrar of Mortgage Brokers                                        1200 - 13450 102nd Avenue
                                                                            Surrey, BC V3T 5X3
                                                                       Telephone: 604-953-5300
                                                                        Facsimile: 604-953-5301
MB 09-005                                -2-                       NOVEMBER 2009


The amendments to the Act are set out below.


                             Mortgage Brokers Act

12 Section 8 of the Mortgage Brokers Act, R.S.B.C. 1996, c. 313, is
amended

    (a) by repealing subsection (1) and substituting the following:

            (1) After giving a person registered under this Act an opportunity to be
            heard, the registrar may do one or more of the following:

                       (a) suspend the person's registration;

                       (b) cancel the person's registration;

                       (c) order the person to cease a specified activity;

                       (d) order the person to carry out specified actions that the
                       registrar considers necessary to remedy the situation;

            if, in the opinion of the registrar, any of the following paragraphs
            apply:

                       (e) the person would be disentitled to registration if the
                       person were an applicant under section 4;

                       (f) the person is in breach of this Act, the regulations or a
                       condition of registration;

                       (g) the person is a party to a mortgage transaction that is
                       harsh and unconscionable or otherwise inequitable;

                       (h) the person has made a statement in a record filed or
                       provided under this Act that, at the time and in the light of
                       the circumstances under which the statement was made,
                       was false or misleading with respect to a material fact or
                       that omitted to state a material fact, the omission of which
                       made the statement false or misleading;

                       (i) the person has conducted or is conducting business in a
                       manner that is otherwise prejudicial to the public interest;
MB 09-005                                  -3-                       NOVEMBER 2009


                         (j) the person is in breach of a provision of Part 2 or 5 of
                         the Business Practices and Consumer Protection Act
                         prescribed under section 9.1 (2). ,

   (b) in subsection (1.1) by striking out "paragraphs (b) to (e)" and
   substituting "paragraphs (f) to (i)",

   (c) by adding the following subsections:

            (1.2) After giving a person who was formerly registered under this Act
            an opportunity to be heard, the registrar may do one or both of the
            following:

                         (a) order the person to carry out specified actions that the
                         registrar considers necessary to remedy the situation;

                         (b) order the person to pay an administrative penalty of not
                         more than $50 000;

            if, in the opinion of the registrar, any of paragraphs (f) to (i) of
            subsection (1) applied to the person while the person was registered.

            (1.3) After giving a person registered under this Act an opportunity to
            be heard, the registrar may do one or more of the following:

                         (a) suspend the person's registration;

                         (b) cancel the person's registration;

                         (c) order the person to cease a specified activity;

                         (d) order the person to carry out specified actions that the
                         registrar considers necessary to remedy the situation;

            if the person

                         (e) has been convicted of an offence in Canada or another
                         jurisdiction arising from business, a transaction or a course
                         of conduct related to mortgages, mortgage brokerage, real
                         estate, insurance or securities, or

                         (f) has been found by a regulator or court in Canada or
                         another jurisdiction to have contravened the laws of the
                         jurisdiction respecting mortgages, mortgage brokerage, real
                         estate, insurance or securities.
MB 09-005                                 -4-                       NOVEMBER 2009


            (1.4) After giving a person an opportunity to be heard, the registrar
            may do one or more of the following:

                       (a) order the person to cease a specified activity;

                       (b) order the person to carry out specified actions that the
                       registrar considers necessary to remedy the situation;

                       (c) order the person to pay an administrative penalty of not
                       more than $50 000;

            if, in the opinion of the registrar, the person was or is carrying on
            business as a mortgage broker or submortgage broker without being
            registered as required by this Act. , and

   (d) by repealing subsections (2) and (3) and substituting the
   following:

            (2) If the length of time that would be required to give a person an
            opportunity to be heard under subsection (1), (1.2), (1.3) or (1.4)
            would, in the registrar's opinion, be prejudicial to the public interest,
            the registrar may, without giving the person an opportunity to be
            heard, suspend a registration under subsection (1) (a) or (1.3) (a) or
            make an order under subsection (1) (c) or (d), (1.2) (a), (1.3) (c) or
            (d) or (1.4) (a) or (b).

            (3) If under subsection (2) the registrar suspends registration or
            makes an order without giving a person an opportunity to be heard,
            the registrar must promptly send written notification of the suspension
            or order to the person and to the tribunal.

13 Section 8.1 is amended

   (a) in subsection (1) by striking out "an order under section 8 (1),
   imposing an administrative penalty," and substituting "an order under
   section 8", and

   (b) by repealing subsection (2) and substituting the following:

            (2) An order of the registrar filed under subsection (1) has the same
            force and effect, and all proceedings may be taken on the order, as if
            it were an order of the Supreme Court.
MB 09-005                                                 -5-                                NOVEMBER 2009


14 Section 9 (3) is amended by adding "or an order" after "suspension of
registration".



At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations
and positions regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer
Protection Act and Regulations. While the comments in a particular part of an information bulletin may relate to
provisions of the law in force at the time they were made, these comments are not a substitute for the law. The
reader should consider the comments in light of the relevant provisions of the law in force at the time, taking into
account the effect of any relevant amendments to those provisions or relevant court decisions occurring after the date
on which the comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                                                  INFORMATION
                                                                   BULLETIN

BULLETIN NUMBER:                         MB10-006

TITLE:                                   GUIDELINES ON PUBLICATION OF
                                         ORDERS, DECISIONS AND NOTICES OF
                                         HEARING ON THE INTERNET

LEGISLATION:                             MORTGAGE BROKERS ACT

DATE:                                    AUGUST 2010

1.    Disciplinary action undertaken by the Registrar of Mortgage Brokers may result in
      an order being made. Such an order may be made on an urgent basis without a
      hearing, by consent or following a hearing.

2.    When disciplinary action results in an order, that order will be published on the
      website of the Financial Institutions Commission at www.fic.gov.bc.ca
      (the “FICOM Website”).

3.    The length of time that an order will remain published on the FICOM Website will
      depend on the nature of the disciplinary action taken.

Orders involving registered mortgage brokers and/or registered submortgage
brokers

4.    Orders which result in the permanent cancellation or suspension of registration
      shall remain posted on the FICOM Website in perpetuity.

5.    Orders which result in the cancellation or suspension of registration for one year
      or more shall remain posted on the FICOM Website for a period of ten years from
      the date of the order.

6.    Orders which result in the cancellation or suspension of registration for less than
      one year shall remain posted on the FICOM Website for a period of five years
      from the date of the order.




Registrar of Mortgage Brokers                                       1200 - 13450 102nd Avenue
                                                                           Surrey, BC V3T 5X3
                                                                      Telephone: 604-953-5300
                                                                       Facsimile: 604-953-5301
                                                                        http://www.fic.gov.bc.ca
MB 10-006                                    -2-                           AUGUST 2010


7.    Orders which do not result in the cancellation or suspension of registration, but
      which result in other forms of sanction (including, but not limited to, administrative
      penalties, cease and desist orders and/or orders requiring a registrant to carry
      out specified remedial action(s)) shall remain posted on the FICOM Website for a
      period of three years, except as follows:

      (a)      If a part of the sanction contained in the order extends for a period of more
               than three years, then the order shall remain posted for the duration. For
               example, if the order includes a term pursuant to which the registrant is
               required to submit to and pay for a series of examinations over a period of
               four years, then the order shall remain posted for four years and not three;
               and

      (b)      If the order requires payment of an administrative penalty and/or costs,
               then the order shall not be removed from the FICOM Website after three
               years unless and until the money owing has been paid.

8.    Orders and/or reasons for decision which dismiss all allegations shall remain
      posted on the FICOM Website for a period of three years from the date of the
      order.

9.    Consent orders involving registered mortgage and submortgage brokers shall be
      posted on the FICOM Website after they have been signed by all parties, and
      been approved and signed by the Registrar.

10.   Orders and/or reasons for decision involving registered mortgage and
      submortgage brokers, made following a hearing, shall only be posted on the
      FICOM Website after the applicable appeal period has lapsed.

Orders made in respect of non-registrants, including former registrants under the
Mortgage Brokers Act

11.   Orders which require a person formerly registered under the Mortgage Brokers
      Act to either carry out specified actions or to pay an administrative penalty and/or
      costs shall remain posted on the FICOM website for a period of three years.
MB 10-006                                    -3-                             AUGUST 2010


12.   Orders which require a non-registered mortgage broker or submortgage broker to
      cease a specified activity and/or carry out remedial action and/or pay an
      administrative penalty and/or costs shall remain posted on the FICOM website
      for a period of three years.

13.   Consent orders involving former or non-registered mortgage and submortgage
      brokers shall be posted on the FICOM Website after they have been signed by
      all parties, and been approved and signed by the Registrar.

14.   Orders and/or reasons for decision involving former or non-registered mortgage
      and submortgage brokers, made following a hearing, shall only be posted on the
      FICOM Website after the applicable appeal period has lapsed.

Suitability hearings involving non-registered mortgage or submortgage brokers

15.   A Registrar’s decision on suitability in respect of a non-registered mortgage or
      submortgage broker shall be posted on the FICOM Website for a period of two
      years from the date of the decision unless the decision reached bars the
      applicant from applying for registration for a period longer than two years. In
      such a case, the decision shall remain posted until the application bar period
      established by the Registrar has lapsed. For example, if the Registrar decides
      that an applicant is ineligible to apply for registration for a period of five years,
      then the Registrar’s decision shall remain posted on the FICOM Website for five
      years, and not two.

Orders made in urgent circumstances, without notice

16.   Orders made in urgent circumstances (including summary suspension and freeze
      orders) shall remain posted on the FICOM Website until either a decision made
      following a hearing, or a consent order approved by the Registrar, has been
      posted.

17.   Orders made in urgent circumstances shall be posted on the FICOM Website
      immediately after being made.
MB 10-006                                         -4-                                AUGUST 2010


Notices of Hearing

18.    In the event a Notice of Hearing is issued, it shall be published on the FICOM
       Website at least 60 days prior to the hearing date. The Notice of Hearing will be
       removed from the FICOM Website as follows:

       (a)      Upon the allegations having been withdrawn;
       (b)      After a hearing has taken place, and an order made and posted on the
                FICOM Website; or
       (c)      After a consent order, approved by the Registrar, has been executed by
                all parties and posted on the FICOM Website.

Public access to all records

19.    The foregoing are FICOM’s guidelines relating to the publication of orders,
       decisions and notices of hearing on the FICOM Website. However, these, and
       all other decisions remain available for review by the public, and may also be
       shared with affected parties as determined by the Registrar, in accordance with
       section 8 of the Mortgage Broker Act Regulation, which reads as follows:

                Every direction, decision, order or ruling of the registrar refusing
                registration, refusing to renew registration, suspending registration or
                cancelling registration shall be made in writing and shall be open to public
                inspection, and a copy of any such reasons shall be supplied by the
                registrar to any person who applies therefore, or who, in the opinion of the
                registrar, may be affected thereby.

20.    Where circumstances warrant, the Registrar may deviate from these guidelines.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act,
Business Practices and Consumer Protection Act and Regulations. While the comments in a particular
part of an information bulletin may relate to provisions of the law in force at the time they were made,
these comments are not a substitute for the law. The reader should consider the comments in light of the
relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the
comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
                      Ministry of Finance
                      Financial Institutions Commission
                      1900 - 1050 West Pender Street
                                                                    INFORMATION
                      Vancouver, BC V6E 3S7
                      Phone: 604-660-2947
                      Fax: 604-660-3170
                                                                BULLETIN
       ● Superintendent of Financial Institutions           ● Credit Union Deposit Insurance Corporation of British Columbia
       ● Registrar of Mortgage Brokers                      ● Superintendent of Real Estate



                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                             1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                           Phone: 604-953-5300
                                            Fax: 604-953-5301

       BULLETIN NUMBER:                             MB-96-003

       TITLE:                                       ADVANCE FEE SCHEME

       LEGISLATION:                                 MORTGAGE BROKERS ACT

       DATE:                                        December, 1996

We have recently become aware that lenders requesting advance fees and who are located
outside Canada have contacted various mortgage brokers in British Columbia. In all cases
reviewed by this office, the promised funds were never advanced.

Generally, the "lender" purports to represent a group of wealthy investors who have considerable
assets to invest in projects in British Columbia. In many cases, the "lender" will retain a local
lawyer to add an air of legitimacy to the transaction. The "lender" will then contact mortgage
brokers advising of the willingness to lend funds and offering mortgage brokers a substantial
finders fee.

When mortgage funds are requested, the "lender" requests a sizeable advance fee as a processing
fee. However, once the advance fee is received, in all cases, the "lender" is unable to provide the
funding and often becomes difficult to locate.

As the "lender" is located outside Canada, it is impossible for this office to stop such activity or
to proceed with a criminal investigation. However, all information relating to advance fee
schemes is forwarded to the FBI to assist in their investigations and prosecutions.

Notwithstanding the high finders fee offered by foreign "lenders", mortgage brokers must be
alert to the possibility that the "lender" requesting an advance fee likely has no intention of
providing funding. Mortgage brokers who recommend that clients pay advance fees to foreign
lenders may not be acting in their client's best interest and in certain circumstances may be
considered to be acting in a manner prejudicial to the public.

If you have questions regarding the content of the Information Bulletin, please contact Mr. Alan
Clark, Director of Investigations, at (604) 660-2508.
                                                                                                        April 2004
                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                       1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                     Phone: 604-953-5300
                                      Fax: 604-953-5301

         OPEN LETTER FROM THE REGISTRAR OF MORTGAGE BROKERS

Enclosed you will find new Bulletins MB 04-001 and MB 04-002, issued by the Registrar
of Mortgage Brokers (the “Registrar”) relating to upcoming changes in legislation which
will affect the mortgage brokerage industry in British Columbia.

In conjunction with the Government’s streamlining initiatives, the Legislature has passed
various amendments to the Regulations of the Mortgage Brokers Act. The amendments
included herein will take effect June 1, 2004 and specifically relate to Division 2 – Fees
(MB 04-001) and Division 3 – Statements and Records (MB 04-002).

Attached as well are Bulletins MB 04-003 and MB 04-004.

MB 04-001: FEES

Effective June 1, 2004, fees as detailed in Division 2 of the Mortgage Brokers Act
Regulations are increasing. In addition, new fees are being implemented for late
financial filings pursuant to the Conditions of Registration and late renewals of
registration for mortgage brokers and submortgage brokers.

MB 04-002: CONDITIONS OF REGISTRATION – FINANCIAL FILINGS

Effective June 1, 2004, the financial filing requirements under section B of the
Conditions of Registration for mortgage brokers who do not handle trust funds are
changing. The changes will streamline the filing requirements which will now be solely
the responsibility of the mortgage broker.




Financial      • Superintendent  of Financial Institutions   Mailing Address:                Web Address:
Institutions   • Superintendent  of Pensions                 1900 -1050 West Pender Street   www.fic.gov.bc.ca
               • Superintendent of Real Estate               Vancouver BC V6E 3S7
Commission
               • Registrar of Mortgage Brokers               Telephone: 604 660-2947
               • Credit Union Deposit Insurance              Facsimile: 604 660-3170
                 Corporation of British Columbia
                                           -2-



MB 04-003: APPLICATIONS FOR REGISTRATION

Bulletin MB 04-003 addresses several areas of concern with respect to filing of
registration applications with the Registrar and is designed to streamline communication
between the mortgage broker community and FICOM. Over the past year, in excess of
40% of applications submitted have been deficient of information. As many of you are
aware, incomplete or inaccurate applications lead to unnecessary delays. The most
common errors and omissions as well as frequently asked questions are summarized in
this bulletin.

MB 04-004: CONFLICT OF INTEREST

It has come to the attention of the Registrar of Mortgage Brokers that some lenders are
offering incentives in the form of “points” or “bonuses” to brokers who refer business to
them. Under these programs, it is possible for one borrower to benefit at the expense of
another, or for the referring broker to receive cash incentives. Such situations represent
a conflict of interest, which must be disclosed. MB 04-004 examines this issue in detail.

BUSINESS PRACTICES AND CONSUMER PROTECTION ACT

We anticipate that the Business Practices and Consumer Protection Act (“BPCPA”) will
be in force on July 5, 2004. At that time, the requirement under section 16 of the
Mortgage Brokers Act to provide a Form 6 – Disclosure Statement will be repealed.
Instead, mortgage brokers will be required to comply with the disclosure requirements of
the BPCPA.

The format for this new disclosure will not be mandated under the BPCPA. It will be up
to each mortgage broker to develop a form in order to comply with the disclosure
requirements of the BPCPA. The Registrar of Mortgage Brokers will not be
developing a form for use by registrants. Failure to comply with the BPCPA may
result in regulatory action against the mortgage broker.

If mortgage brokers are unclear of the requirements of the BPCPA, we recommend they
seek legal counsel. Further updates concerning the BPCPA will be provided on our
website as information becomes available.
                                          -3-



FINANCIAL SERVICES TRIBUNAL (“FST”)

The FST was created to partially replace the Commercial Appeals Commission, which
was eliminated as part of the BC Government’s Core Review.

The FST hears appeals from individuals and institutions who want to contest
enforcement decisions made by the Insurance Council of BC, Real Estate Council of
BC, Superintendent of Real Estate, Superintendent of Pensions, Registrar of Mortgage
Brokers, and Superintendent of Financial Institutions.

Implementation of the FST is anticipated to be June 1, 2004.

Information on the appeal process and contact information will soon be available as a
link on our website at www.fic.gov.bc.ca.



LR04-349-bdw-dt.doc
                                                                INFORMATION
                                                                BULLETIN

   BULLETIN NUMBER:                      MB 10-001

   TITLE:                                USE AND PROTECTION OF CLIENT
                                         INFORMATION

   LEGISLATION:                          MORTGAGE BROKERS ACT

   DATE:                                 JANUARY 26, 2010


  The Registrar’s staff have received several enquiries and complaints from both
  mortgage broker registrants and members of the public concerning the
  protection, use and transfer of confidential client information. The following
  requirements clarify the obligations of mortgage brokers and submortgage
  brokers in dealing with client information. In addition, mortgage broker
  registrants may wish to consult the websites of the Office of the Information
  and Privacy Commissioner for British Columbia at http://www.oipcbc.org/ and
  the Office of the Privacy Commission of Canada at http://www.priv.gc.ca/ for
  further information and requirements of other statutes.

   1. In addition to the requirements of relevant legislation on the protection and
      privacy of personal information, a mortgage broker must not disclose
      information regarding a client or a transaction to another person unless
      the disclosure has been authorized by the client or the disclosure is
      required by law.
   2. Mortgage brokers and submortgage brokers must take reasonable steps
      to ensure that client information is kept safe from access by persons who
      are not authorized by the client to have the information unless such
      access is required by law.
   3. When a client terminates the services of a mortgage broker and
      subsequently retains an alternate mortgage broker, the terminated
      mortgage broker must, upon receiving a written client authorization to
      transfer documents, cooperate with the newly retained mortgage broker by
      transferring all original client documents, such as original income tax
      documents, and copies of other relevant file contents, such as mortgage
      applications and commitments, to the newly retained mortgage broker.
      The terminated mortgage broker must keep a copy of the transfer
      authorization from the client.
Registrar of Mortgage Brokers                                       1200 - 13450 102nd Avenue
                                                                           Surrey, BC V3T 5X3
                                                                      Telephone: 604-953-5300
                                                                       Facsimile: 604-953-5301
MB 10-001                                             -2-                           JANUARY 26, 2010


    4. A submortgage broker who transfers his or her registration from one
       mortgage broker to another must not make use of client information
       obtained in the course of his or her registration with the former mortgage
       broker unless the new mortgage broker, to whom the submortgage broker
       is registered, has obtained consent from the client to use such information.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act, and
Regulations and the Business Practices and Consumer Protection Act and Regulations. While the
comments in a particular part of an information bulletin may relate to provisions of the law in force at the
time they were made, these comments are not a substitute for the law. The reader should consider the
comments in light of the relevant provisions of the law in force at the time, taking into account the effect of
any relevant amendments to those provisions or relevant court decisions occurring after the date on
which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                                                               INFORMATION
                                                                                BULLETIN

          BULLETIN NUMBER:              MB09-003

           TITLE:                        RECORD KEEPING REQUIREMENTS FOR
                                         MORTGAGE BROKERS

           LEGISLATION:                  MORTGAGE BROKERS ACT

           DATE:                         May 13, 2009


Section 6(a) of the Mortgage Brokers Act Regulations requires that mortgage brokers keep such
books and records as are necessary for the proper recording of their business transactions. The
Registrar’s requirements for keeping books and records are set out below.

   1. Mortgage brokers shall keep separate, and make available at their registered business
      address for a period of seven years, all records relating to each mortgage transaction or
      potential mortgage transaction in which the mortgage broker is involved, including:

         signed copies of client service agreements;
         signed copies of mortgage administration agreements;
         commitment letters;
         mortgage applications;
         property appraisals;
         credit bureau reports and authorizations;
         records confirming down payment information, such as bank statements, gift letters;
         copies of client income tax records, such as Notices of Assessment, tax returns, T4 slips;
         copies of employment letters and pay stubs confirming client employment and income;
         copies of rental tenancy agreements confirming rental income;
         business licenses and incorporation documents confirming existence of business
          operations;
         signed copies of cost of credit disclosures;
         signed copies of investor lender disclosures;
         signed copies of conflict of interest disclosures;
         client banking records;
         receipts of monies from client; and
         any other relevant documentation or information relating to the transaction.

   2. Mortgage brokers may keep any inactive records in a secure off site storage facility, provided
      that the records are easily retrieved and made available to the Registrar or the Registrar’s staff
      at the mortgage broker’s registered business address within a reasonable period of time of
      them being requested by the Registrar or the Registrar’s staff.

   3. If a mortgage broker does not have a registered business address in British Columbia, it shall
      make available to the Registrar’s staff at the Registrar’s office or the service address of the
MB09-003                                                    -2-                                                      May 13, 2009

         mortgage broker, all records requested by the Registrar or the Registrar’s staff within 7
         business days of the request being made.

    4. All records may be kept in electronic form provided that the record can be easily reproduced in
       a printed format.



At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and positions
regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection Act and Regulations.
While the comments in a particular part of an information bulletin may relate to provisions of the law in force at the time they were
made, these comments are not a substitute for the law. The reader should consider the comments in light of the relevant provisions of
the law in force at the time, taking into account the effect of any relevant amendments to those provisions or relevant court decisions
occurring after the date on which the comments were made. Subject to the above, an interpretation or position contained in an
information bulletin generally applies as of the date on which it was published, unless otherwise specified.

                                                                   -
                           Registrar of Mortgage Brokers                INFORMATION
                                      nd
                           1200 - 13450 102 Avenue
                           Surrey, BC V3T 5X3
                           Phone: 604-953-5300
                           Fax: 604-953-5301
                                                                        BULLETIN



        BULLETIN NUMBER:             MB 08-001

        TITLE:                       MAKING MORTGAGE RELATED REFERRALS

        LEGISLATION:                 MORTGAGE BROKERS ACT

        DATE:                        January 2, 2008


Referrals and Mortgage Arranging: Requirement for Mortgage Broker Registration

Individuals who receive fees or other consideration for referring borrowers to lenders or
mortgage brokers should be careful not to engage in activities which are part of the process
of “arranging mortgages”.

Any individual who arranges a mortgage or mortgages and either directly or indirectly
receives fees or any other consideration exceeding $1,000 in any one year for arranging a
mortgage or mortgages must obtain mortgage broker registration under the Mortgage
Brokers Act. The Registrar of Mortgage Brokers interprets the phrase “arranging mortgages”
to include any essential activity which is part of the process of a borrower obtaining a
mortgage from a lender. An individual begins the process of arranging a mortgage from the
time they begin to communicate with a prospective borrower about mortgages.

Specific activities which are part of the mortgage arranging process include:

   •    engaging in the businesses of soliciting borrowers for the purpose of mortgage
        referrals;
   •    taking mortgage applications;
   •    explaining mortgage terms and options;
   •    reviewing mortgage documentation;
   •    obtaining credit checks; and
   •    providing mortgage advice, including advice on how to deal with mortgage proceeds or
        mortgage payments.

Therefore, an individual will require mortgage broker registration if he or she:

    •    refers borrowers to lenders or mortgage brokers, or mortgage brokers or lenders to
         borrowers; and
    •    engages in any mortgage arranging activities; and
    •    receives $1,000 or more in any one year for arranging mortgages.

                                                                                          .../2
MB 08-001                                               -2-                                            January 2, 2008

Please be aware that fees or other consideration for arranging mortgages include fees paid
by lenders or borrower, points, other benefits, or consideration obtained in alternate or
indirect ways, such as being entitled to income from invested mortgage proceeds or any kind
of remuneration related to dealing with the mortgage proceeds.

Simple Referrals: Mortgage Broker Registration Not Required

An individual who becomes aware of prospective borrowers and does no more than provide
the name of a mortgage broker or lender to a borrower, or the name of a borrower to a
mortgage broker or lender is not engaging in any activities which are part of the mortgage
arranging process. Such individuals will therefore not require registration under the Mortgage
Brokers Act, regardless of the amount they receive as referral fees, finder’s fees or other
compensation throughout a year.
At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and
positions regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection
Act and Regulations. While the comments in a particular part of an information bulletin may relate to provisions of the law in
force at the time they were made, these comments are not a substitute for the law. The reader should consider the
comments in light of the relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the comments were made.
Subject to the above, an interpretation or position contained in an information bulletin generally applies as of the date on
which it was published, unless otherwise specified.

                                                           - 30 –


MB 08-001-Jan 2.doc
                                                                   INFORMATION
                                                                    BULLETIN

BULLETIN NUMBER:                          MB 10-004

TITLE:                                    MORTGAGE LEAD GENERATION:
                                          REQUIREMENT FOR MORTGAGE BROKER
                                          REGISTRATION

LEGISLATION:                              MORTGAGE BROKERS ACT

DATE:                                     JUNE 2010




Mortgage lead generation involves an entity or individual gathering lists of potential
mortgage borrowers, who are considered to be “mortgage leads”. The lists of mortgage
leads are then sold to mortgage brokers, who may contact the individual leads for the
purpose of attempting to arrange mortgage financing for them.

The lists of potential mortgage borrowers are often generated through the internet by
setting up a website which may provide mortgage information or mortgage advice and
providing a simple form of mortgage application. The application data is gathered by
the mortgage lead generator and then forwarded to the mortgage broker. Mortgage
leads may also be generated over the telephone by telemarketers contacting persons
and enquiring about their interest in obtaining a new mortgage or refinancing a current
mortgage, in addition to gathering personal and financial information from the potential
borrower.

Mortgage lead generation is a specific activity which is part of the mortgage arranging
process. The Registrar of Mortgage Brokers interprets the phrase “arranging
mortgages” to include any essential activity which is part of the process of a borrower
obtaining a mortgage from a lender. An individual begins the process of arranging a
mortgage from the time they begin to communicate with a prospective borrower about
mortgages.



Registrar of Mortgage Brokers                                        1200 - 13450 102nd Avenue
                                                                            Surrey, BC V3T 5X3
                                                                       Telephone: 604-953-5300
                                                                        Facsimile: 604-953-5301
                                                                         http://www.fic.gov.bc.ca
MB 10-004                                         -2-                                    JUNE 2010


Specific activities which are part of the mortgage arranging process include:

           Engaging in the business of soliciting borrowers for the purpose of mortgage
            referrals, including engaging in the business of offering mortgage lead
            generation services by gathering the names of potential mortgage borrowers
            and providing lists of those potential borrowers to mortgage brokers;

           Taking mortgage applications, including simple applications which may be
            used by mortgage lead generators to collect borrower data or gathering
            application information through the telephone or other telecommunication
            mediums; and

           Explaining mortgage terms and options, including the provision of simple
            mortgage information or advice on websites intended to attract potential
            mortgage borrowers.

Any individual who arranges a mortgage or mortgages and either directly or indirectly
receives fees or any other consideration exceeding $1,000 in any one year for arranging
a mortgage or mortgages must obtain mortgage broker registration under the Mortgage
Brokers Act.

Therefore, an individual will require mortgage broker registration if he or she:

           Engages in any mortgage arranging activities; and

           Receives $1,000 or more in any one year for arranging mortgages.

Information on mortgage broker registration can be obtained from the Financial
Institutions Commission website at www.fic.gov.bc.ca or by calling 604-953-5300.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act,
Business Practices and Consumer Protection Act and Regulations. While the comments in a particular
part of an information bulletin may relate to provisions of the law in force at the time they were made,
these comments are not a substitute for the law. The reader should consider the comments in light of the
relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the
comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
                                                                  INFORMATION
                                                                  BULLETIN


   BULLETIN NUMBER:                      MB 10-003 (amended)

   TITLE:                                CONFIRMATION OF IDENTIFICATION FOR
                                         CRIMINAL RECORD CHECKS

   LEGISLATION:                          MORTGAGE BROKERS ACT

   DATE:                                 MAY 2010


      In order for FICOM to conduct criminal record checks (in addition to
      registration applicants submitting a completed Consent to Suitability
      Investigation form) the following will be required with every application for
      an individual’s mortgage broker or submortgage broker registration or
      renewal of registration as of June 1, 2010:

            A Form 16, “Declaration of Designated Individual – Confirmation of
             Applicant’s Identification”, which has been duly completed by the
             Designated Individual, a Director of the Mortgage Broker or a
             person appointed by the Designated Individual to confirm
             identification; and


            Colour copies of two pieces of government-issued identification of
             the Applicant, such as a current driver’s license or passport, with
             one piece of identification containing a photograph of the Applicant.

      The purpose of the Form 16 is to ensure that the Designated Individual,
      Director or person appointed by the Designated Individual to confirm
      identification examines the identification and confirms that the person
      applying for registration or renewal of registration is in fact the same
      person pictured in the photograph of the government issued identification.
Registrar of Mortgage Brokers                                        1200 - 13450 102nd Avenue
                                                                            Surrey, BC V3T 5X3
                                                                       Telephone: 604-953-5300
                                                                        Facsimile: 604-953-5301
                                                                         http://www.fic.gov.bc.ca
MB 10-003                                         -2-                                     MAY 2010




        Copies of the identification must be clean and in colour. Therefore, they
        may be sent electronically or by mail, but not by fax.

        For further information about this requirement, please contact the staff of
        the Registrar at 604-953-5300 or at FICOM@ficombc.ca.




At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical
interpretations and positions regarding certain provisions contained in the Mortgage Brokers Act,
Business Practices and Consumer Protection Act and Regulations. While the comments in a particular
part of an information bulletin may relate to provisions of the law in force at the time they were made,
these comments are not a substitute for the law. The reader should consider the comments in light of the
relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the
comments were made. Subject to the above, an interpretation or position contained in an information
bulletin generally applies as of the date on which it was published, unless otherwise specified.
           Registrar of Mortgage Brokers
                              nd
           1200 – 13450 102 Avenue
           Surrey, BC V3T 5X3
           FICOM@Ficombc.ca




 DECLARATION OF DESIGNATED INDIVIDUAL – CONFIRMATION
            OF APPLICANT’S IDENTIFICATION

                                                                                                FORM 16




I, _____________________________________________________declare that:
           (Designated Individual, Director or person appointed by the
                        Designated Individual to confirm identification)


       I have examined two pieces of government issued identification of the
        applicant for registration, who is:

                  _________________________________________________________
                                             (Legal Name of the Applicant)


       I am satisfied, from my review of the identification, that it is that of the
        applicant for registration.


Attached to this Form 16, are two colour copies of the identification (one must
contain a photograph) of the Applicant which I have examined for the purpose of
making this declaration.




DECLARED at:


                  in the Province of British Columbia           Signature of Designated Individual, Director or
                                                              person appointed by the Designated Individual to
          this_____ day of _____________, 201___                             confirm identification




MBA F16 04/2010
                             Registrar of Mortgage Brokers              INFORMATION
                                        nd
                             1200 - 13450 102 Avenue
                             Surrey, BC V3T 5X3
                             Phone: 604-953-5300
                             Fax: 604-953-5301
                                                                        BULLETIN



      BULLETIN NUMBER:              MB 08-002

      TITLE:                        REGISTRATION REQUIREMENTS FOR
                                    MORTGAGE DEVELOPMENT BROKERS
                                    CONTRACTED BY FINANCIAL INSTITUTIONS

      LEGISLATION:                  MORTGAGE BROKERS ACT

      DATE:                         September 12, 2008


Registration Requirements for Mortgage Development Brokers Contracted by Financial
Institutions

All persons, unless exempted under section 11 of the Mortgage Brokers Act (the “Act”), who
engage in mortgage brokering activity require registration as either a mortgage broker or a
submortgage broker. Under section 1 of the Act, the activities which require mortgage broker
registration include:

      (a)   carrying on a business of lending money secured in whole or in part by
            mortgages, whether the money is the mortgage broker's own or that of another
            person;

      (b)   holding oneself out as a mortgage broker in an advertisement, notice, or sign;

      (c)   carrying on a business of buying and selling mortgages or agreements for sale;

      (d)   in any one year, receiving an amount of $1,000 or more in fees or other
            consideration, excluding legal fees for arranging mortgages for other persons;

      (e)   during any one year, lending money on the security of 10 or more mortgages; and

      (f)   carrying on a business of collecting money secured by mortgages.

Under section 11 of the Act, persons who are employed by a financial institution are exempt
from the registration requirements. However, individuals, partnerships, or corporations who
are contracted by a financial institution to engage in mortgage brokering activity on behalf of
the financial institution are considered to be independent contractors and not employees of
the financial institution. A person who brokers mortgages between borrowers and third party



                                                                                             .../2
MB 08-002                                               -2-                                      September 12, 2008


lenders, lends their own mortgage funds, or operates under a name other than that of the
proper name of the financial institution will be considered to be an independent contractor
and not an employee.

An independent contractor or a person deemed to be an independent contractor working with
a financial institution must obtain mortgage broker registration. It is an offence under section
21(1) of the Act for a person to carry on the business of a mortgage broker or submortgage
broker unless he or she is exempted under section 11.

Persons who engage in mortgage brokering activity as an independent contractor on behalf
of a financial institution will now be registered as “Mortgage Development Brokers”. For a
limited period, they will be permitted to obtain immediate registration as a Mortgage
Development Broker upon the condition that they complete the BC Procedures Course within
9 months of obtaining registration.

At the office of the Registrar of Mortgage Brokers, we issue information bulletins to provide technical interpretations and
positions regarding certain provisions contained in the Mortgage Brokers Act, Business Practices and Consumer Protection
Act and Regulations. While the comments in a particular part of an information bulletin may relate to provisions of the law in
force at the time they were made, these comments are not a substitute for the law. The reader should consider the
comments in light of the relevant provisions of the law in force at the time, taking into account the effect of any relevant
amendments to those provisions or relevant court decisions occurring after the date on which the comments were made.
Subject to the above, an interpretation or position contained in an information bulletin generally applies as of the date on
which it was published, unless otherwise specified.

                                                           - 30 –


MB 08-002-Sep12.doc
                Financial Institutions
                Commission of BC
                                                           December 1,2005

             Open Letter to Mortsaae Brokers and Submortgage Brokers
                           Regarding "Hanging Registrations"


It has come to my attention that a significant number of submortgage brokers are not
actively engaged in the business of mortgage brokering. They are "hanging their
registration" at the office of a mortgage broker in order to keep their registration active.

I remind you that the mortgage broker industry is capable of rapid change and growth,
and in order for submortgage brokers to keep current on such changes, they must be
routinely involved in the business of mortgage brokering. There is a clear danger that
persons who are presently registered under the Mortgage Brokers Act (the "Act") and
who choose not to do any mortgage brokering will be unaware of current industry
practises and requirements.

Furthermore, the Act addresses this concern by prohibiting submortgage brokers from
hanging their registration. A submortgage broker is defined in section 1 of the Act as a
person who actively engages in any of the things referred to in the definition of
mortgage broker and is employed by a mortgage broker. Being "employed" means that
the submortgage broker is actively involved in providing mortgage broker services on
behalf of his or her employer in exchange for some kind of remuneration.

My office is aware of cases where submortgage brokers, who have been considered to
be inactive by their employers, have engaged in mortgage brokering activities on their
own behalf and without the knowledge of the mortgage broker. Ultimately, mortgage
brokers are responsible for supervising the activities of their employees and ensuring
that they comply with the requirements of the Act. Accordingly, mortgage brokers should
not sponsor an individual who seeks registration under the Act, if the applicant has
expressed an intention not to actively engage in any mortgage brokering. Likewise,
mortgage brokers should terminate the registration of a submortgage broker who has not
engaged in any kind of mortgage broker activity for a considerable period of time.
Mortgage brokers should be aware that if they permit inactive submortgage brokers to
hang their registration, they risk facing regulatory action from my office.

I trust that the above information clarifies this matter

                                                       Yours truly,



                                                       W. Alan Clark
                                                       Registrar of Mortgage Brokers


Registrar of Mortgage Brokers                                    1200 -13450 102"~    Avenue
                                                                 Surrey, BC V3T5X3
                                                                 Telephone: 604 953-5300
                                                                 Facsimile: 604 953-5301
                                                                 http://www.fic.gov. bc.ca
                      Ministry of Finance
                      Financial Institutions Commission
                      1900 - 1050 West Pender Street
                      Vancouver, BC V6E 3S7
                      Phone: 604-660-2947
                                                                 BULLETIN
                      Fax: 604-660-3170


       ● Superintendent of Financial Institutions           ● Credit Union Deposit Insurance Corporation of British Columbia
       ● Registrar of Mortgage Brokers                      ● Superintendent of Real Estate
       ● Superintendent of Pensions


                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                             1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                           Phone: 604-953-5300
                                            Fax: 604-953-5301

       BULLETIN NUMBER:                             MB 04-003

       TITLE:                                       APPLICATIONS FOR REGISTRATION

       LEGISLATION:                                 MORTGAGE BROKERS ACT

       DATE:                                        APRIL 2004


Over the last year, there has been a significant growth in the number of registered
mortgage brokers and submortgage brokers in British Columbia. As of March 31, 2004,
there were 1787 submortgage brokers working out of 649 mortgage broker locations,
being 155 branch offices and 494 head offices. This is a 20% increase in individuals
working as submortgage brokers since March 31, 2003.

In the past, the office of the Registrar of Mortgage Brokers (the “Registrar”) spent a
good deal of time handling applications that did not contain all of the information
required. Over the last two years, the number of incomplete applications has increased
from 30% in 2002/2003 to nearly 40% for the current fiscal year. In some months, the
number has been over 50%. This is one of the reasons that the application fees are
increasing as outlined in Bulletin MB 04-001. The most common problems are the lack
of:

•   Signatures, that of the applicant, the Designated Individual or both;
•   Work history, with some but not all of the required 5 years being provided;
•   Education, with nothing attached to demonstrate that the applicant has passed the
    required course examination;
•   Resident history, with nothing attached to explain periods of residence outside of
    Canada;
•   Bankruptcy exhibits, with no information on the bankruptcy attached;
•   Name of Employer, with no information or incomplete information provided;

                                                                                                                         …./2
MB 04-003                                   -2-                                   April 2004

•   Legal proceedings, with no disclosure provided;
•   Full legal name of submortgage broker applicant with “nick” names or only one given
    name listed; and
•   Fees.
This office is committed to turning applications around as quickly as possible, both new
applications for registration and renewals. However, if the applications are incomplete,
the turn around time increases.

Information relating to the requirements for the registration and renewal of registration,
including educational requirements, fees and forms is available on the website for the
Financial Institutions Commission at www.fic.gov.bc.ca. Simply click on the
“Departments” icon, then on the “Real Estate and Mortgage Brokers Department” icon.

We encourage you to use this resource rather than contacting our office for information,
as it is quicker and more efficient. If you do not have access to the Internet, we suggest
that you visit your local library. We will continue to add information to our web site, so
watch the site in the future.

For the benefit all registrants, here is a list of frequently asked questions regarding
registration and renewal.


                         Frequently Asked Questions

Q: Where can I find information about registration?

A: On our website www.fic.gov.bc.ca. Always use current forms from website.


Q: Who do I make my cheque out to?

A: All cheques are made payable to: Minister of Finance.


Q: Do I have to answer every question on the application?

A: Yes, the application is required to be completed in full.


Q: Do I have to attach an exhibit to any of the questions I respond “yes”
   to?

A: For any question that is not self-explanatory or needs clarification an exhibit must
   be attached. For example “Have you ever lived outside of Canada?”


                                                                                          .../3
MB 04-003                                  -3-                                April 2004

Q: Does legal name include middle names?

A: Yes. Provide your full, legal name including all middle names.


Q: Do I need to list a full five years of employment even if I didn’t work
   during that time?

A: Yes. List a full five years including self-employed and unemployed periods (full 60
   month period prior to application).


Q: What do I need to submit as proof of meeting the educational
   requirements?

A: A copy of the UBC Certificate (not your marks).


Q: Who is supposed to sign registration applications and renewal forms?

A: The applicant and the Designated Individual for the company.


Q: How long will my application take to process?

A: If everything is done correctly it should not take more than ten business days.


Q: What if I forget to submit information when applying for registration?

A: Your application would be deficient and would be held pending receipt of the
   information. This can cause quite a lengthy delay.


Q: Should I phone to find out if my registration has been processed?

A: No. View the Current Mortgage Broker and Sub-Broker Listing on our website:
   www.fic.gov.bc.ca. Once you have been registered your name will appear on this
   list.


Q: When does my renewal application need to be submitted?

A: Thirty days prior to the expiration date of your registration.




                                                                                     .../4
MB 04-003                                  -4-                                 April 2004

Q: Do I have to update any information on my renewal application?

A: Yes. Please ensure the personal information is current. If there have been
   changes, please cross out the old information on the pre-printed form and hand
   write the new information on the renewal application form; or you can attach a
   separate exhibit.


Q: Do I have to answer the questions on the bottom half of my renewal
   application?

A: Yes. Please ensure that you answer all the questions that apply: If you are a sole
   proprietor mortgage broker or a submortgage broker, answer the first set of
   questions, A to F; If you are applying to renew a corporate or partnership mortgage
   broker, answer the second set of questions, A to E.

    Remember to attach an exhibit explaining the circumstances, if you answer “yes” to
    any of the questions.


Q: Who has to sign my renewal application?

A: If you are renewing your submortgage broker registration, both you and the
   Designated Individual from your mortgage broker employer have to sign the form.

    If you are renewing the registration of a mortgage broker, then the Designated
    Individual for the mortgage broker must sign the form.


Q: When do I need to return my certificate?

A: Return your certificate when you are transferring to a different Mortgage Broker
   company, or if you are leaving the industry. Ensure that the back of the certificate is
   completely filled out and signed by the Designated Individual.


Q: Do I have to let you know if I move to a different address?

A: Yes. If a mortgage broker moves, or the branch office of a mortgage broker
   relocates to a different address, then the Registrar of Mortgage Brokers must be
   advised. The certificates for the mortgage broker and all of the submortgage
   brokers employed at that location must be returned, with the applicable fee. New
   certificates of registration will be issued.

    If the address for service of any registrant changes, they must advise the Registrar.


                                          - 30 -
MBA04-03.doc
                      Ministry of Finance
                      Financial Institutions Commission
                      1900 - 1050 West Pender Street
                      Vancouver, BC V6E 3S7
                      Phone: 604-660-2947
                                                                 BULLETIN
                      Fax: 604-660-3170


       ● Superintendent of Financial Institutions           ● Credit Union Deposit Insurance Corporation of British Columbia
       ● Registrar of Mortgage Brokers                      ● Superintendent of Real Estate
       ● Superintendent of Pensions



                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                             1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                           Phone: 604-953-5300
                                            Fax: 604-953-5301

      BULLETIN NUMBER:                              MB 04-002

      TITLE:                                        CONDITIONS OF REGISTRATION

      LEGISLATION:                                  MORTGAGE BROKERS ACT

      DATE:                                         APRIL 2004


In conjunction with the Government’s streamlining initiatives, the Registrar of Mortgage
Brokers has amended the Conditions of Registration for those mortgage brokers who do not
handle trust funds.

Many of you will recall that prior to January 1997, all mortgage brokers were required to file
audited financial statements annually with the Registrar. In 1997, the Registrar amended
the Conditions of Registration to allow those mortgage brokers that did not handle trust
funds to file an accountant’s statement confirming that the mortgage broker did not handle
or receive trust funds or funds that should have been held in trust. The amendments now
being introduced will further streamline reporting requirements.

Effective June 1, 2004, mortgage brokers that do not handle trust funds will be required
to file a statutory declaration sworn before a lawyer or notary public that confirms the
mortgage broker did not handle or receive trust funds or funds that should have been held
in trust. The statutory declaration must be filed within thirty (30) days of the mortgage
broker’s fiscal year-end, since it will no longer be necessary for an accountant to conduct an
audit or review of the mortgage broker’s books and records. Late filings will be subject to
late filing fees and to other regulatory action.

Mortgage brokers should be aware that a person who swears a statutory declaration
containing false or untrue information commits perjury as defined in section 131. (1) of the
Criminal Code of Canada. Should the Registrar receive a statutory declaration that is
subsequently shown to contain false or untrue information, criminal charges will be pursued
with Crown Counsel.
MB 04-002                                                                      April 1, 2004

We believe this change to the Conditions of Registration will reduce the regulatory burden
on mortgage brokers. The financial filing requirements for mortgage brokers that handle
trust funds remain unchanged. A copy of the revised Conditions of Registration is posted
on our website, as well as a sample statutory declaration.

                                           - 30 -

MB 04-002.doc
                      Ministry of Finance
                      Financial Institutions Commission
                      1900 - 1050 West Pender Street
                      Vancouver, BC V6E 3S7
                      Phone: 604-660-2947
                                                                 BULLETIN
                      Fax: 604-660-3170


       ● Superintendent of Financial Institutions          ● Credit Union Deposit Insurance Corporation of British Columbia
       ● Registrar of Mortgage Brokers                     ● Superintendent of Real Estate
       ● Superintendent of Pensions



                                            Please Note:
        As of April 2005 the Financial Institutions Commission of BC address changed to:
                             1200 – 13450 – 102 Avenue Surrey BC V3T 5X3
                                           Phone: 604-953-5300
                                            Fax: 604-953-5301

      BULLETIN NUMBER:                              MB 04-001

      TITLE:                                        FEES PAYABLE UNDER THE MORTGAGE
                                                    BROKERS ACT

      LEGISLATION:                                  MORTGAGE BROKERS ACT

      DATE:                                         APRIL 2004




 CHANGES TO FEES PAYABLE TO THE REGISTRAR OF MORTGAGE BROKERS
               UNDER THE MORTGAGE BROKERS ACT


The fees payable for applications for registration, registration of branch offices, renewal
of registration, and amendments to certificates of registration, including transfers of
registration, under the Mortgage Brokers Act have been increased effective June 1,
2004. In addition, there is a new late filing fee for renewals of registration and financial
filings. These also become effective June 1, 2004.

Fees under the Mortgage Brokers Act have not been adjusted since 1987 and no longer
reflect the cost of regulating the industry. The fee increases, as listed below, will assist
the Registrar of Mortgage Brokers in recovering the costs associated with the
registration program.

Certificates of registration will continue to be issued for a two year period.


   Application Fee for Registration as a Mortgage Broker Having Only a Single
                                Business Address



                                                                                                                          .../2
MB 04-001                                   -2-                                  April 2004

The fee for new applications for registration as a mortgage broker, where the broker
has only one business location will increase to $1,000 on June 1, 2004. The
registration period will be two years.


Application Fee for Registration as a Mortgage Broker Having More Than a Single
                                Business Address

Effective June 1, 2004, the fee for new applications for registration as a mortgage
broker, where the broker has more than one location, will increase to $1,000 for the
Head Office location. The registration fee for each additional branch location will be
unchanged at $200 for each location. However, this $200 is now a one-time
registration fee for the branch locations. The renewals for all branch locations will be
the same as that for the Head Office.

Existing branch locations for mortgage brokers currently registered will be renewed at
the same time as the Head Office in the future. Therefore, a company with a Head
Office and six branch locations will receive renewal advices for all seven of the locations
at the time the registration of the Head Office location expires. The company will be
requested to update the information for all of the locations and return the seven
renewals. There will be one renewal fee, as noted below, for this.

The registration period will continue to be for two years.


             Application Fee for Registration as a Submortgage Broker

The fee for new applications for registration as a submortgage broker will increase to
$1,000 on June 1, 2004. The registration period will be two years.


      Application Fee for Renewal of Registration as a Mortgage Broker or a
                              Submortgage Broker

The fee for the renewal of registration as a mortgage broker, regardless of the number
of locations registered at the time of renewal, will be $500 effective June 1, 2004.

The fee for the renewal of registration as a submortgage broker will be $500 effective
June 1, 2004.

The registration period for renewals will continue to be two years for both mortgage
brokers and submortgage brokers.




                                                                                       .../3
MB 04-001                                 -3-                                  April 2004


 Fee to Amend, on application by a Mortgage Broker or Submortgage Broker, the
          Register Kept Under Section 3 of the Mortgage Brokers Act

The fee to amend the business address of any location from which a mortgage broker
operates, including branch offices; to amend the name of a mortgage broker, including
the addition of a trade name; to amend the business address from which a
submortgage broker conducts business, including the transfer of a submortgage broker
between branches of a mortgage broker; and to amend the name of a submortgage
broker, due to the change of that person’s legal name, will be $200 effective June 1,
2004.


 Fee for Reinstatement of Registration of a Submortgage Broker, in Accordance
                  With Section 3(8) of the Mortgage Brokers Act

The fee to apply for the transfer of a submortgage broker registration will be $200
effective June 1, 2004.


   Fee for the Late Filing of a Renewal of Registration or Financial Information
                    Required Under the Mortgage Brokers Act

Effective June 1, 2004, there is an automatic late filing fee of $50 per day to a
maximum of $500 for the late filing of an application for the renewal of a mortgage
broker or submortgage broker registration, and for the late filing of financial
information required by the Registrar of Mortgage Brokers.

Please note that Mortgage Brokers Act Regulation 3 requires that an application for
renewal of registration must be submitted at least 30 days in advance of the last day of
the term of the current registration.

The Conditions of Registration for mortgage brokers require that the annual financial
filing must be filed within 120 days of the mortgage broker’s year-end if the broker
handles trust funds and within 30 days of the mortgage broker’s year-end if the broker
does not handle trust funds.


                           Mortgage Development Officers

The Registrar is no longer issuing this category of registration. Individuals conducting
mortgage broker business on behalf of financial institutions exempted from registration
under the Mortgage Brokers Act must be either employees of the financial institution or
must be registered as mortgage brokers.




                                                                                      .../4
MB 04-001                                   -4-                           April 2004



                SCHEDULE OF FEES UNDER THE MORTGAGE BROKERS ACT
                              EFFECTIVE JUNE 1, 2004

For the registration of a mortgage broker                             $1000
For the registration of a submortgage broker                          $1000
For the registration of a branch location of a mortgage broker        $200
For the renewal of the registration of a mortgage broker               $500
For the renewal of the registration of a submortgage broker           $500
For the transfer of a submortgage broker registration                 $200
For the amendment of registration information, including a            $200
change of address or name
For the late filing of a renewal of registration of a mortgage   $50 per day to a
broker or submortgage broker                                     maximum of $500
For the late filing of a financial filing                        $50 per day to a
                                                                 maximum of $500
  ALL CHEQUES SHOULD BE MADE PAYABLE TO THE MINISTER OF FINANCE.



                                           - 30 -


MB 04-001.doc

								
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