Staying Compliant with FICOM Regulations on Private Mortgage Lending
July 27, 2018
Protect your private lending activities by using a license mortgage broker and administrator.
FICOM regulates mortgage activities in BC.
Activities that require licensing include:
When is Registration Required? Under the Mortgage Brokers Act (the Act), companies, partnerships and sole proprietors, unless exempted under section 11 of the Act, need to be registered as mortgage brokers to engage in mortgage broker activity. The Act defines a “mortgage broker” as a person who does any of the following:
a) carries 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) holds himself or herself out as, or by an advertisement, notice or sign indicates that he or she is, a mortgage broker;
c) carries on a business of buying and selling mortgages or agreements for sale;
d) in any one year, receives 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, lends money on the security of 10 or more mortgages; and
f) carries on a business of collecting money secured by mortgages.