Law & Policy
Law & Policy

April 27, 2011

TO ALL MORTGAGE DEALERS

PROVINCE OF MANITOBA

The Mortgage Brokers Act (the "Act"), previously the Mortgage Dealers Act, was recently proclaimed on April 20, 2011, to come into effect on May 1, 2011. There have been a number of changes to the Act with the most notable involving a Mortgage Dealer being outlined as follows.

  • A Mortgage Dealer will now be categorized as a Mortgage Broker. Authorized official and salespersons categories remain unchanged.
  • A requirement that all mortgage brokers obtain errors and omissions insurance is detailed in section 7 of the regulations which reads,

(a) is in a form approved by the registrar;

(b) includes extended coverage for fraudulent acts;

(c) is sufficient to pay a minimum of

(i) $500,000 with respect to any occurrence involving the broker, and

(ii) $1,000,000 with respect to all occurrences during a 365-day period involving the broker.

  • The minimum capital requirements to be maintained by a mortgage broker have been increased to $100,000 from $25,000.
  • A fee increase for new applications and renewal of applications as follows:
    • New registration or reinstatement of registration

$500

    • Renewal  of registration (unchanged)

$350

    • New registration or reinstatement for authorized official

$175

    • Renewal of registration for authorized official
$125
    • New registration for salesperson  
$175
    • Renewal of registration for salesperson
$125
 Note: This is the first fee increase since the Act came into force in 1988.

The application forms can be obtained on the Manitoba Securities Commission’s web site at www.msc.gov.mb.ca under real estate and then forms. The renewal application deadline remains unchanged and is required to be filed no later than May 31, 2011.

If you require any further information contact the Deputy Registrar-Registrations at (204) 945-2562.

 

W.D. Baluk
Registrar