Sample 2011 Annual Information Return for Mortgage Brokerages

Transcription

1 Sample 2011 Annual Information Return for Mortgage Brokerages BROKERAGE DATA Legal name of the brokerage Other authorized name Licence number Business type Principal Broker Principal place of business address Mailing address Phone number Principal Broker address NOTE: If any of the above information has changed, please notify the Financial Services Commission of Ontario (FSCO) by at THE ANNUAL INFORMATION RETURN AND ALL OF ITS QUESTIONS PERTAIN TO THE PERIOD COVERING JANUARY 1 TO DECEMBER 31, UNLESS OTHERWISE STATED, THE RETURN IS DUE NO LATER THAN MARCH 31, REMINDER: The brokerage must file if it was licensed anytime between January 1, 2011 and December 31, 2011, whether or not it conducted business. If you are a franchisor, do not report for your franchisees.

2 Sample 2011 Annual Information Return for Mortgage Brokerages Page 1 BROKERAGE INFORMATION A. E&O Insurance Provider: Dropdown List of approved E&O insurers B. Policy #: C. Expiry date: mm/dd/yyyy D. Is your brokerage a franchise? Yes No E. If yes, the name of the franchise: F. If the brokerage has an administrator licence, enter the administrator licence number here: # # # # # # G. Did your brokerage deal or trade in mortgages during the reporting period? Yes No G/i) If not, what was your primary business? If answer "No", grey out question 8b and 14 to 20 Dropdown NOTE: For a definition of dealing or trading in mortgages, refer to MBLAA, s. 2 (1) and s. 3 (1). H. Please provide the brokerage s nine digit business registration number (optional): # # # # # # # # # # TRUST ACCOUNT INFORMATION The purpose of these questions is to verify compliance with legal obligations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA). 1. Did the brokerage have a trust account(s) under the MBLAA? Yes No If answer "No", move to question 3 If yes: 1a) How many MBLAA trust accounts did the brokerage have as at Dec. 31 st? # 1b) Has the brokerage reported all MBLAA trust accounts to the Superintendent? Yes No 1c) Has the brokerage reconciled all of its MBLAA trust accounts? Yes No 1c/i) If no, why not? 2. Was there a shortfall, at any time, in any of the MBLAA trust accounts? Yes No 2a) If yes, please complete the following: Date Amount Corrected When 1. mm/dd/yyyy # Yes/No mm/dd/yyyy 2. mm/dd/yyyy # Yes/No mm/dd/yyyy 3. mm/dd/yyyy # Yes/No mm/dd/yyyy 4. mm/dd/yyyy # Yes/No mm/dd/yyyy Other (2a/i) If more than four shortfalls, please explain.

3 Sample 2011 Annual Information Return for Mortgage Brokerages Page 2 SUPERVISION OF OPERATIONS The purpose of these questions is to determine whether the brokerage s operations are organized in a way that facilitates supervision and to facilitate examination/inspection planning by FSCO. 3. Where was the brokerage s head office in Canada as at Dec. 31 st? Dropdown If head office is not in Ontario, grey out question 9 4. Provide the total number of offices for each Ontario region as at Dec. 31 st, as applicable: Ontario Region # of Offices Central Ontario (L/M)* # Southwestern Ontario (N) # Eastern Ontario (K) # Northern Ontario (P) # Total # of Offices AUTO * L or M, N, K, P is the first letter of the postal code for each region respectively 4a) List top five locations by the number of offices for each Ontario region, as applicable: Dropdown list of cities/towns Central Ontario Region City/Town (i) # of Offices (ii) 1 Dropdown #1 # 2 Dropdown #2 # 3 Dropdown #3 # 4 Dropdown #4 # 5 Dropdown #5 # Eastern Ontario Region City/Town # of Offices 1 Dropdown #1 # 2 Dropdown #2 # 3 Dropdown #3 # 4 Dropdown #4 # 5 Dropdown #5 # Northern Ontario Region City/Town # of Offices 1 Dropdown #1 # 2 Dropdown #2 # 3 Dropdown #3 # 4 Dropdown #4 # 5 Dropdown #5 # Southwestern Ontario Region City/Town # of Offices 1 Dropdown #1 # 2 Dropdown #2 # 3 Dropdown #3 # 4 Dropdown #4 # 5 Dropdown #5 # NOTE: Choose the city/town that the location is closest to.

4 Sample 2011 Annual Information Return for Mortgage Brokerages Page 2 SUPERVISION OF OPERATIONS (cont'd) 5. How many offices in Ontario did the brokerage have that were open to the public as at Dec. 31 st? # NOTE: For the purpose of the AIR, "open to the public" is defined as: "A place of business accessible by the general public or where the public is invited to come during business hours." 6. Of the offices open to the public, in Ontario, how many were more than 100 km away from the primary location of work for the principal broker? # 7. Please select all applicable steps (as described in your Policies and Procedures) taken by the brokerage during the reporting period to provide adequate supervision for all offices in Ontario where business was transacted: q Onsite Supervisor/Manager q File Review/File Audits q Regular Meetings (monthly, quarterly etc.) q Policies and Procedures/Best Practices q Training/Support (phone/ /fax/online) q Other Multiple selection 7a) If "Other" is selected, please explain: 8. Did your brokerage deal or trade in mortgages in other Canadian provinces/territories? Yes No If answer "No", move to question 10 8a) If yes, please provide the following information for each province/territory, as applicable: Canadian Province/Territory % of # Mortgages % of $ Mortgages Alberta # # British Columbia # # Manitoba # # New Brunswick # # Nova Scotia # # Northwest Territories # # Nunavut # # Prince Edward Island # # Quebec # # Saskatchewan # # Yukon # # TOTAL 8b) What percentage of mortgage business, approximately, was conducted in Ontario? % of # Mortgages # (i) % of $ Mortgages # (ii)

5 Sample 2011 Annual Information Return for Mortgage Brokerages Page 3 SUPERVISION OF OPERATIONS (cont'd) 9. If the brokerage's head office is in Ontario: How many offices did the brokerage have in Canada, outside of Ontario, as at Dec. 31st? Canadian Province/Territory # of Offices Alberta # British Columbia # Manitoba # New Brunswick # Nova Scotia # Northwest Territories # Nunavut # Prince Edward Island # Quebec # Saskatchewan # Yukon # Note: For the purpose of the AIR, "office" is defined as: "A place of business where a broker or agent spends more than 50% of his or her time working on mortgage brokering, including home offices." 10. Please provide the following information about the number of brokers/agents registered by the brokerage in Ontario during the reporting period: Total # of Brokers # of Agents # of staff Total # # # 10a) How many brokers/agents left the brokerage in the reporting period (resigned/terminated)? # 10b) During the reporting period, did the brokerage terminate a broker/agent for cause? Yes No If "No", move to question 11 If yes: 10c) Did you report the matter to FSCO through Licensing Link? Yes No 10d) Did you report all cases to FSCO pursuant to O. Reg. 188/08, s. 43 (3)? Yes No 11. Did you review the brokerage's Policies and Procedures pursuant to O. Reg. 410/07, s. 3 (1) during the reporting period? Yes No If "No", move to question 12 11a) When were they last updated? mm/dd/yyyy

6 Sample 2011 Annual Information Return for Mortgage Brokerages Page 4 RECORDS OF INFORMATION 12. What format were your required records stored in? r Electronic r Paper Please check one or both options, as applicable 12a) Were the required records retained at the brokerage's principal place of business in Ontario? Yes No If "Yes", move to question 13 If not: 12b) Was the Superintendent notified? Yes No 12c) What is the retrieval lead time required to access your files? Electronic Records Dropdown with Same day 1-3 days Over 3 days Paper Records Dropdown with Same day 1-3 days Over 3 days 13. Has your brokerage taken adequate precautions to ensure the security of your records? Yes No If "No", move to question 14 13a) If yes, please explain:

7 Sample 2011 Annual Information Return for Mortgage Brokerages Page 5 PORTFOLIO DETAILS / INFORMATION 14. How many mortgage transactions did your brokerage broker and close during the reporting period and what was their value? Total # of mortgages # (i) Total $ value of mortgages # (ii) 14a) Provide the number and dollar value for the brokerage's portfolio: Mortgage Type # of Mortgages (14a/i) $ of Mortgages (14a/ii) Residential # # Commercial # # Conventional # # High Ratio* # # Reverse # # First Mortgage # # Second Mortgage # # New Loans # # Renewals** # # First Time Homebuyers # # Sub-Prime*** # # Other (not listed above): # # NOTE: Please enter whole numbers for all amounts. Dollar sign ($), comma (,) and decimal point (.) are not accepted. * High-Ratio: Loan to Value Ratio is 80% or more. ** Renewals: Mortgages that were originally placed by the brokerage. *** Sub-Prime: For the purpose of the AIR, sub-prime business means arranging a mortgage for individual(s) (whose income was used to qualify for the deal) with a credit score of 600 points or less (or a reasonable equivalent). It is based on the credit worthiness of the individual borrower(s).

8 Sample 2011 Annual Information Return for Mortgage Brokerages Page 5 PORTFOLIO DETAILS / INFORMATION (cont'd) 15. Did the brokerage fund more than 50% of its business with any one lender, including the brokerage itself? Yes No 15a) If yes, what category did the lender belong to? If answer "No", move to question 16 Type (15a/i) q Bank q Credit Union q Private Lender q Self-Funding q Trust Company q Other Name (15a/ii) 16. Did the brokerage buy, sell or exchange mortgages during this period? Yes No If answer "No", move to question 17 16a) on behalf of another person or entity? Yes No # of Mortgages $ of Mortgages (16a/i) (16a/ii) 16b) on the brokerage s own behalf? Yes No # of Mortgages $ of Mortgages (16b/i) (16b/ii) 17. Was the brokerage a lender during the reporting period? Yes No If answer "No", move to question 18 17a) If yes, what was the total number and dollar value of mortgages funded by the brokerage? # of Mortgages $ of Mortgages (17a/i) (17a/ii) Questions 18 and 19 are intended for information gathering purposes only, and not for compliance purposes. 18. Did your brokerage operate a Mortgage Investment Corporation (MIC) during the reporting period? Yes No 19. Did your brokerage use any non-owned or operated MICs to fund any of its mortgages? Yes No If answer "No", move to question 20 19a) If yes, what percentage of your business did that represent, approximately? % of # Mortgages % of $ Mortgages Please note, that the above information is optional for this AIR, but may be required in the future. NOTE: For the purpose of the AIR, a Mortgage Investment Corporation (MIC) is an investment/lending company designed specifically for mortgage investing or lending, in Canada, and governed by the Income Tax Act. The MIC is organized for investing in pools of mortgages, primarily residential, and manages a diversified and secured portfolio of mortgages. Profits generated by the MIC are distributed to its shareholders according to their proportionate share. (19a/i) (19a/ii)

9 Sample 2011 Annual Information Return for Mortgage Brokerages Page 6 SYNDICATION 20. Did the brokerage syndicate any mortgages? Yes No If answer "No", move to question 21 20a) If yes, please provide the following: Type of Mortgage Response Total # of Mortgages Total $ of Mortgages Total # of Investors Designated Investors (O. Reg. 188/08, s.2) as a Proportion of Total Investors Who administers the mortgages? How many of the total syndications are subprime, and what's their dollar value? # of Mortgages $ of Mortgages Residential Yes/No # # # # self/investor/3rd party # # Commercial Yes/No # # # # self/investor/3rd party # # Other Yes/No # # # # self/investor/3rd party # # 21. Did the brokerage arrange or participate in arranging any securitization facilities? Yes No 21a) If yes, please complete the following: If answer "No", move to question 22 # of Instruments # (i) $ of Instruments # (ii) 22. Did the brokerage make securitization sales? Yes No If answer "No", move to question 23 22a) If yes, please complete the following: # of Mortgages # (i) $ of Mortgages # (ii) NOTE: Securitization in questions #21 and 22 means providing mortgages for, or otherwise arranging pools of mortgages in connection with, the creation of mortgage-backed securities. 23. Did your brokerage use third-party administrative services? Yes No

10 Sample 2011 Annual Information Return for Mortgage Brokerages Page 7 COMPLAINTS AND COMPLAINT HANDLING 24. Is the person designated to receive complaints at the brokerage the principal broker? Yes No If answer "No", move to question 25 24a) If no, name of person designated to receive complaints for the brokerage: 25. Total number of written complaints received by the brokerage during the reporting period: # 25a) Of the total written complaints received, how many were responded to, as required by legislation? # NOTE: The brokerage must respond, in writing, to all written complaints that are received. 25b) Of the total written complaints received, how many were resolved as at Dec. 31 st? # NOTE: For the purpose of the AIR, resolved means that the brokerage has addressed and responded in writing to all concerns raised by the complainant. SUITABILITY 26. Were any E&O claims made against the brokerage or the brokerage's brokers/agents, in any Canadian jurisdiction, during the reporting period? 26a) If yes, how many claims? # Yes No If answer "No", move to question Were any claims against the brokerage paid by its E&O insurance carrier or bonding company, in any Canadian jurisdiction, during the reporting period? Yes No If answer "No", move to question 28 If yes: 27a) How many claims were paid out? # 27b) Provide a brief explanation: 28. Were any claims against the brokerage's brokers or agents paid by its E&O insurance carrier or bonding company, in any Canadian jurisdiction, during the reporting period? Yes No If answer "No", move to question 29 If yes: 28a) How many claims were paid out? # 28b) Provide a brief explanation: 29. During the reporting period, was a complaint made against the brokerage to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, on fraud, theft, deceit, misrepresentation, forgery or similar conduct? Yes No If answer "No", move to question 30 29a) Provide a brief explanation:

11 Sample 2011 Annual Information Return for Mortgage Brokerages Page 7 SUITABILITY (cont'd) 30. During the reporting period, was the brokerage fined or were any monetary penalties imposed by any Canadian financial services regulator excluding FSCO? 30a) If yes, provide a brief explanation: Yes No If answer "No", move to question During the reporting period, did the brokerage have any unpaid fines/monetary penalties owing to any Canadian financial services regulator, other than FSCO? 31a) If yes, provide a brief explanation: Yes No If answer "No", move to question During the reporting period, was the brokerage subject to any charges laid under the laws of any Canadian province/ territory? 32a) If yes, provide a brief explanation: Yes No If answer "No", move to question During the reporting period, were any licences the brokerage held from a regulatory body/professional organization revoked or suspended? 33a) If yes, provide a brief explanation: Yes No If answer "No", move to question 34

12 Sample 2011 Annual Information Return for Mortgage Brokerages Page 8 REPORTING CHANGES 34a) Did the brokerage open any offices during the reporting period? Yes No If answer "No", move to question 34b 34a/i) If yes, how many offices were opened? # 34b) Did the brokerage close any offices during the reporting period? Yes No If answer "No", move to question 34c 34b/i) If yes, how many offices were closed? # 34c) Did any of the following information change during the reporting period, and did you report the changes to FSCO through Licensing Link: Brokerage Information Changed? Reported? Address for Service q q Address of Principal Place of Business q q , Phone or Fax q q Officers or Directors q q Partners in Partnership q q E&O Insurance q q Multiple selection REMUNERATIONS/PAYMENTS 35. Did your brokerage accept non-monetary remuneration from lenders? Yes No 35a) If yes, what kind of remuneration? q Points q Trips q q Gifts Event Tickets Multiple selection q Memberships If "Other" is selected, please explain: q Other 35a/i) 36. Did your brokerage have contingency commission (i.e. volume bonus) or payment arrangements with lenders? Yes No 37. Did your brokerage have tri-party compensation agreements for payments of incentives other than money, between your brokerage, brokers/agents, and other brokerages? Yes No

13 Sample 2011 Annual Information Return for Mortgage Brokerages Page 9 Attestation by the Principal Broker, AUTO I, Dropdown, OF AUTO ('The Brokerage') CERTIFY THAT: I am aware that it is an offence to make a false statement to the Superintendent under the Mortgage Brokerages, Lenders and Administrators Act, 2006, and that the information provided in this Annual Information Return is true to the best of my knowledge and belief. All agents and brokers authorized to deal and trade in mortgages on behalf of this brokerage have completed or will successfully complete the relicensing education course by March 31, 2012, as required under O. Reg. 409/07, s. 9 (4). As Principal Broker, I have taken reasonable steps under O. Reg. 410/07, s. 2 (1) to ensure their compliance with this requirement. NOTE: Only the principal broker of the brokerage can submit this Annual Information Return. The name referred above matches the name on the principal broker's licence. Please select the name from the dropdown as shown. REMINDER: Before submitting this return, please make sure that you have thoroughly reviewed all answers for accuracy. Once the AIR is submitted, no changes can be made.