The clock is ticking for brokers to get their licence renewal application in before the cutoff date
With just three weeks remaining in Ontario’s annual licensing period for mortgage agents and brokers, the province’s regulator is warning industry members that leaving their renewal to the last minute could have serious implications for their ability to keep doing business.
Brokers must renew their licence with the Financial Services Regulatory Authority of Ontario (FSRA) every year by March 31, with the renewal window opening on February 1 – and this year, they’re also required to submit confirmation of having completed additional educational requirements.
Yovanka McBean (pictured top), FSRA’s director of licensing, told Canadian Mortgage Professional that fewer than half of the sector’s agents and brokers required to send renewal applications have done so with only 21 days left until that deadline passes.
And missing the cutoff point – or waiting until it passes to submit an application – is a risk mortgage agents and brokers shouldn’t take lightly, according to McBean.
“We really want to encourage people to submit their renewal before the final week of the month because it will mitigate any potential interruptions to their ability to conduct business,” she said.
“I say that because if their licences expire, they’re no longer authorized to trade in mortgages. They have to wait, if they submit an application after the renewal deadline, for that application to be approved before they can continue to conduct business and potentially be paid out commission from their brokerage or anything from the lender.”
By contrast, if they submit their renewal application before that statutory deadline, they can continue to transact in mortgages even while waiting for the application to be processed and finalized. “That’s a key element to them not having a disruption to their business and being able to transition into the next cycle,” McBean said.
Agents, brokers taking longer to send renewal applications
Continuing Education (CE) requirements consist of two components: seven hours’ worth of conduct education related to ethics, fraud, suitability, and cybersecurity, and technical knowledge and professional development education – 10 hours relating to mortgage brokering’s technical aspects.
Those requirements come into play every two years, with brokers typically taking longer to send renewal applications when those are involved. “What we normally see is a slower uptick of renewals when it’s a continuing education year,” McBean said.
“People are kind of scrambling to get in maybe at the last minute or potentially find receipts for what they’ve attended over the last couple of years to get their paperwork together. We’re 21 days away from the end of the new season and we’ve seen a slower pace – which isn’t unanticipated.”
Regulator’s message to brokers: Don’t leave it down to the wire
While applications are usually processed quickly, they can take 20 business days or more if there’s a suitability concern – essentially, if FSRA has doubts about whether an individual should be allowed to hold a mortgage agent or broker licence.
And leaving a renewal up to the last minute might not be a wise decision, McBean added, with a big influx of applications expected to arrive as the deadline nears in the coming weeks.
“Between February 1 and March 31, we have approximately 18,000 individual agents and brokers licensed in the province that are up for renewal,” she said. “So there can be an impact just based on volume – especially where we may see very large volume very close to the deadline.
“So that turnaround time may change a little bit depending on how many applications are in the queue at a given time.”
That means it’s even more essential to get applications in before the deadline – because brokers can continue to conduct business without a hitch if they do, instead of missing the date and having to wait for approval before resuming.
“Even if it takes us until, let’s say April 5 to finalize the application, they’re allowed to continue under the statute as long as the application is submitted before the expiry date,” McBean said. “So that’s why it’s really key to not leave it to the last minute.”
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