Mortgage Lender, Brokerage, Broker and Administrator Licensing Regulations
made under Section 90 of the
Mortgage Regulation Act
S.N.S. 2012, c. 11
N.S. Reg. 121/2020 (effective November 1, 2021)
amended to N.S. Reg. 217/2022 (effective November 1, 2022)
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
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Citation
Definitions
Application for mortgage lender licence
Application for mortgage brokerage licence
Application for mortgage broker licence
Application for associate mortgage broker licence
Application for mortgage administrator licence
Expiry date of licences
Deadline for renewing licence
Errors and omissions insurance
Criminal record check
Educational programs for mortgage brokers and associate mortgage brokers
Prescribed circumstances for reinstatement of suspended licence
Prescribed period for reinstatement
Public register of mortgage brokerages, lenders and administrators
Public register of mortgage brokers and associate mortgage brokers
Citation
1 These regulations may be cited as the Mortgage Lender, Brokerage, Broker and
Administrator Licensing Regulations.
Definitions
2 In these regulations,
“Act” means the Mortgage Regulation Act;
“educational program” means an educational program, including a continuing
education program, that meets the criteria of Section 12;
“errors and omissions insurance” means insurance that provides extended coverage
for loss resulting from fraudulent Acts in the amount required by Section 10;
“former Act” means Chapter 291 of the Revised Statutes of Nova Scotia, 1989, the
Mortgage Brokers’ and Lenders’ Registration Act;
“public register” means a public register required to be created and maintained by
the Registrar under subsection 7(1) of the Act.
Application for mortgage lender licence
3 (1) In addition to meeting the applicable licensing requirements in the Act for issuing
or renewing licence under subsection 14(2) of the Act, an applicant for a mortgage
lender licence or licence renewal must meet all of the following requirements:
(a) for an applicant that is
(i) a corporation, the applicant is incorporated or continued under the
laws of any jurisdiction in Canada,
(ii) a partnership or a limited partnership, the applicant is formed under
the laws of any jurisdiction in Canada,
(iii) a sole proprietor, the applicant is a resident of Canada;
(b) the applicant has appointed an agent resident in the Province who
(i) is able to accept service of notice and documents on behalf of the
applicant, and
(ii) has a mailing address that is not a post office box and that is suitable
to permit personal service and service by registered mail;
(c) the applicant has errors and omissions insurance;
(d) the results of any criminal record check conducted under Section 11 do not,
in the Registrar’s opinion, raise any issues concerning the appropriateness of
issuing or renewing the licence;
(e) for a licence renewal application, the applicant is in compliance with the
Act and its regulations;
(f) the applicant does not demonstrate anything that would cause the Registrar
to refuse the application under subsection 14(3) of the Act.
(2) An application for a mortgage lender licence or licence renewal must be
accompanied by all of the following:
(a) proof satisfactory to the Registrar that the applicant meets all of the
requirements in subsection (1), including errors and omissions insurance
referred to in clause (1)(c);
(b) proof satisfactory to the Registrar that the individual who is or will be
designated as the applicant’s compliance officer meets the criteria
prescribed in the Compliance Officer Regulations made under the Act, as
required by subsection 25(1) of the Act;
(c) the results of the criminal record check referred to in clause (1)(d);
(d) any additional information or documentation required by the Registrar under
Section 20 of the Act.
Application for mortgage brokerage licence
4 (1) In addition to meeting the applicable licensing requirements in the Act for issuing
or renewing licence under subsection 14(2) of the Act, an applicant for a mortgage
brokerage licence or licence renewal must meet all of the following requirements:
(a) for an applicant that is
(i) a corporation, the applicant is incorporated or continued under the
laws of any jurisdiction in Canada,
(ii) a partnership or a limited partnership, the applicant is formed under
the laws of any jurisdiction in Canada,
(iii) a sole proprietor, the applicant is a resident of Canada;
(b) the applicant has appointed an agent resident in the Province who
(i) is able to accept service of notice and documents on behalf of the
applicant, and
(ii) has a mailing address that is not a post office box and that is suitable
to permit personal service and service by registered mail;
(c) the applicant has errors and omissions insurance;
(d) the results of any criminal record check conducted under Section 11 do not,
in the Registrar’s opinion, raise any issues concerning the appropriateness of
issuing or renewing the licence;
(e) for a licence renewal application, the applicant is in compliance with the
Act and its regulations;
(f) the applicant does not demonstrate anything that would cause the Registrar
to refuse the application under subsection 14(3) of the Act.
(2) An application for a mortgage brokerage licence or licence renewal must be
accompanied by all of the following:
(a) proof satisfactory to the Registrar that the applicant meets all of the
requirements in subsection (1), including errors and omissions insurance
referred to in clause (1)(c);
(b) proof satisfactory to the Registrar that the individual who is or will be
designated as the applicant’s principal broker meets the criteria prescribed in
the Principal Broker Regulations made under the Act, as required by
subsection 28(1) of the Act;
(c) the results of the criminal record check referred to in clause (1)(d);
(d) any additional information or documentation required by the Registrar under
Section 20 of the Act.
Application for mortgage broker licence
5 (1) In addition to meeting the applicable licensing requirements in the Act for issuing
or renewing a licence under subsection 14(2) of the Act, an applicant for a
mortgage broker licence or licence renewal must meet all of the following
requirements:
(a) the applicant is
(i) at least 19 years old, and
(ii) a resident of Canada;
(b) the results of the criminal record check required by Section 11 do not, in the
Registrar’s opinion, raise any issues concerning the appropriateness of
issuing or renewing the licence;
(c) unless deemed to meet this requirement under subsection (3), the applicant
has successfully completed an educational program and a regulatory
information program conducted by or on behalf of the Registrar in the 2
years immediately before the date of the application;
(d) for an initial application, unless deemed to meet this requirement under
subsection (3), the applicant has held an associate mortgage broker licence
for at least 12 of the 24 months immediately before the date of the
application;
(e) the application is authorized by the licensed mortgage brokerage that will be
named on the applicant’s licence to broker mortgages on behalf of that
licensed mortgage brokerage;
(f) for a licence renewal application, the applicant is in compliance with the
Act and its regulations;
(g) the applicant does not demonstrate anything that would cause the Registrar
to refuse the application under subsection 14(3) of the Act.
(2) An application for a mortgage broker licence or licence renewal must be
accompanied by all of the following:
(a) proof satisfactory to the Registrar that the applicant meets the requirements
in subsection (1), including
(i) completion of the applicable education program requirement referred
to in clause (1)(c) or (d), and
(ii) confirmation, in a form satisfactory to the Registrar, of the
authorization from the mortgage brokerage that the applicant is, or
will be, authorized to broker mortgages on behalf of the mortgage
brokerage;
(b) confirmation, in a form satisfactory to the Registrar, that the applicant has
read and understands the Act and its regulations and agrees to be bound by
their provisions;
(c) the results of the criminal record check referred to in clause (1)(b);
(d) any additional information or documentation required by the Registrar under
Section 20 of the Act.
(3) An applicant for an initial mortgage broker licence who meets any of the following
criteria is deemed to meet the education requirement in clause (1)(c) and the
requirement in clause (1)(d) of having held an associate mortgage broker licence:
(a) the applicant has successfully completed a regulatory information program
about the Act and its regulations conducted by or on behalf of the Registrar
and undertakes to successfully complete an educational program before the
date their licence expires and, for at least 24 of the 36 months immediately
before the date of their application, at least 1 of the following applies:
(i) the applicant held a permit to broker mortgages under the former Act,
(ii) the applicant was employed to broker mortgages on behalf of a
mortgage brokerage that held a permit under the former Act during
the time of that employment,
(iii) the applicant brokered mortgages and was exempt from the
requirement to hold a permit under the Act or the former Act;
(b) the applicant holds a valid licence from 1 of the following provinces that is
of a type that corresponds with a mortgage broker licence class set out in
subsection 12(1) of the Act and the applicant has successfully completed a
regulatory information program about the Act and regulations conducted by
or on behalf of the Registrar:
(i) British Columbia,
(ii) Alberta,
(iii) Saskatchewan,
(iv) Manitoba,
(v) Ontario,
(vi) Quebec,
(vii) New Brunswick.
Application for associate mortgage broker licence
6 (1) In addition to meeting the applicable licensing requirements in the Act for issuing
or renewing a licence under subsection 14(2) of the Act, an applicant for an
associate mortgage broker licence or licence renewal must meet all of the
following requirements:
(a) the applicant is
(i) at least 19 years old, and
(ii) a resident of Canada;
(b) the results of the criminal record check required by Section 11 do not, in the
Registrar’s opinion, raise any issues concerning the appropriateness of
issuing or renewing the licence;
(c) the applicant has successfully completed an educational program in the 2
years immediately before the date of the application,
(d) the application is authorized by the licensed mortgage brokerage that will be
named on the applicant’s licence to broker mortgages on behalf of that
licensed mortgage brokerage and the authorization is limited to brokering
mortgages while acting under the supervision of a licensed mortgage broker;
(e) for a licence renewal application, the applicant is in compliance with the
Act and its regulations;
(f) the applicant does not demonstrate anything that would cause the Registrar
to refuse the application under subsection 14(3) of the Act.
(2) An application for an associate mortgage broker licence or licence renewal must be
accompanied by all of the following:
(a) proof satisfactory to the Registrar that the applicant meets the requirements
in subsection (1), including
(i) completion of the education program referred to in clause (1)(c), and
(ii) confirmation from the mortgage brokerage, in a form satisfactory to
the Registrar, that the applicant is or will be authorized to broker
mortgages on behalf of the mortgage brokerage under the supervision
of a licensed mortgage broker;
(b) confirmation, in a form satisfactory to the Registrar, that the applicant has
read and understands the Act and its regulations and agrees to be bound by
their provisions;
(c) the results of the criminal record check referred to in clause (1)(b);
(d) any additional information or documentation required by the Registrar in
accordance with Section 20 of the Act.
Application for mortgage administrator licence
7 (1) In addition to meeting the applicable licensing requirements in the Act for issuing
or renewing licence under subsection 14(2) of the Act, an applicant for a mortgage
administrator licence or licence renewal must meet all of the following
requirements:
(a) for an applicant that is
(i) a corporation, the applicant is incorporated or continued under the
laws of any jurisdiction in Canada,
(ii) a partnership or a limited partnership, the applicant is formed under
the laws of any jurisdiction in Canada,
(iii) a sole proprietor, the applicant is a resident of Canada;
(b) the applicant has appointed an agent resident in the Province who
(i) is able to accept service of notice and documents on behalf of the
applicant, and
(ii) has a mailing address that is not a post office box and that is suitable
to permit personal service and service by registered mail;
(c) the applicant has errors and omissions insurance;
(d) the results of any criminal record check conducted under Section 11 do not,
in the Registrar’s opinion, raise any issues concerning the appropriateness of
issuing or renewing the licence;
(e) for a licence renewal application, the applicant is in compliance with the
Act and its regulations;
(f) the applicant does not demonstrate anything that would cause the Registrar
to refuse the application under subsection 14(3) of the Act.
(2) An application for a mortgage administrator licence or licence renewal must be
accompanied by all of the following:
(a) proof satisfactory to the Registrar that the applicant meets all of the
requirements in subsection (1), including errors and omissions insurance
referred to in clause (1)(c);
(b) proof satisfactory to the Registrar that the applicant holds a trust account as
required by Section 51 of the Act and in accordance with the regulations
made under the Act, including all of the following information:
(i) the name and branch address of the financial institution where the
account is held,
(ii) the name in which the account is held,
(iii) the account number,
(iv) a list of the authorized signing officers for the account;
(c) proof satisfactory to the Registrar that the individual who is or will be
designated as the applicant’s compliance officer meets the criteria
prescribed in the Compliance Officer Regulations made under the Act, as
required by subsection 35(1) of the Act;
(d) the results of the criminal record check referred to in clause (1)(d);
(e) any additional information or documentation required by the Registrar under
Section 20 of the Act.
Expiry date of licences
8 A licence expires on October 31 in the calendar year immediately after the year it was
issued or renewed.
Deadline for renewing licence
9 An application for a licence renewal must be submitted to the Registrar at least 10 days
before the date the current licence expires.
Errors and omissions insurance
10 (1) A licensed mortgage lender, mortgage brokerage and mortgage administrator must
maintain errors and omissions insurance at all times while their licence is in force.
(2) The coverage provided by errors and omissions insurance must be sufficient to pay
all of the following:
(a) at least $500 000 in respect of any 1 occurrence involving the licensee,
including, for a mortgage brokerage, any mortgage broker or associate
mortgage broker authorized to broker mortgages on its behalf;
(b) at least $1 000 000 in respect of the aggregate of all occurrences during a
365-day period involving the licensee, including, for a mortgage brokerage,
any mortgage broker or associate mortgage broker authorized to broker
mortgages on its behalf.
Criminal record check
11 (1) Except as provided in subsection (2), an applicant for a licence or renewal of a
licence must obtain a criminal record check from the Royal Canadian Mounted
Police, a Canadian municipal police force or the Canadian military police that is
dated no earlier than 3 months before the date of the application and is conducted
on all of the following:
(a) for an applicant that is a corporation, each officer of the corporation;
(b) for an applicant that is a limited partnership, each officer of each general
partner;
(c) for an applicant that is a partnership, each partner or, in the case of a partner
which is a corporation, on each officer of the corporation;
(d) for an applicant that is a sole proprietorship, the sole proprietor; and
(e) for an applicant that is an individual, the individual.
(2) A criminal record check is not required for an application for renewal of a licence
if the applicant confirms in writing that there has been no change in the
information shown on the most recent criminal record check provided to the
Registrar and the Registrar is satisfied that no further verification is required.
Educational programs for mortgage brokers and associate mortgage brokers
12 (1) An educational program for an initial mortgage broker licence must satisfy all of
the following criteria:
(a) the program curriculum covers the competencies for mortgage brokers
established by the Mortgage Broker Regulators’ Council of Canada;
(b) the Registrar is satisfied that the program provider uses effective teaching
and evaluation methods.
(2) An educational program for an initial associate mortgage broker licence must
satisfy all of the following criteria:
(a) the program curriculum covers the competencies for associate mortgage
brokers established by the Mortgage Broker Regulators’ Council of Canada;
(b) the Registrar is satisfied that the program provider uses effective teaching
and evaluation methods.
(3) An educational program for renewal of a mortgage broker licence or associate
mortgage broker licence must satisfy all of the following criteria:
(a) the program curriculum covers topics relevant to at least 2 competencies for
mortgage brokers or associate mortgage brokers established by the
Mortgage Broker Regulators’ Council of Canada and the program is offered
as a continuing education program;
(b) the Registrar is satisfied that the program provider uses effective teaching
and evaluation methods.
Prescribed circumstances for reinstatement of suspended licence
13 The following are the prescribed circumstances required to be met for reinstatement of a
suspended licence under clause 18(3)(a) of the Act:
(a) for reinstatement of a mortgage brokerage licence suspended under
subsection 18(1) of the Act, a mortgage broker becomes authorized by the
mortgage brokerage to broker mortgages on behalf of the mortgage
brokerage and the mortgage brokerage is named in the mortgage broker’s
licence;
(b) for reinstatement of a mortgage broker or associate mortgage broker licence
suspended under clause 18(2)(a) of the Act, either
(i) the mortgage broker or associate mortgage broker becomes
authorized to act on behalf of the mortgage brokerage named in the
mortgage broker’s licence or associate mortgage broker’s licence at
the time of suspension, or
(ii) the mortgage broker or associate mortgage broker becomes
authorized to act on behalf of another mortgage brokerage and the
mortgage broker’s licence or associate mortgage broker’s licence is
amended to name the new mortgage brokerage;
(c) for reinstatement of a mortgage broker or associate mortgage broker licence
suspended under clause 18(2)(b) of the Act, either
(i) the mortgage brokerage named in the mortgage broker’s licence or
the associate mortgage broker’s licence has its licence reinstated or is
issued a new mortgage brokerage licence, or
(ii) the mortgage broker or associate mortgage broker becomes
authorized to broker mortgages on behalf of another mortgage
brokerage and the mortgage broker’s licence or associate mortgage
broker’s licence is amended to name the new mortgage brokerage.
Prescribed period for reinstatement
14 The 30-day period immediately after the date a licence is suspended is prescribed as the
period after which the Registrar may cancel a suspended licence under clause 18(3)(b) of
the Act if it has not been reinstated.
Public register of mortgage brokerages, lenders and administrators
15 (1) All of the following information about each licensed mortgage brokerage,
mortgage lender and mortgage administrator is prescribed as the information
required to be contained in the public register under subsection 7(2) of the Act:
(a) each name in which the licensee is licensed and the corresponding licence
number;
(b) the type of licence held and whether the licensee is in good standing or the
licence suspended;
(c) the licensee’s mailing address for service in the Province, as it appears in
the records kept by the Registrar;
(d) the licensee’s telephone number, as it appears in the records kept by the
Registrar;
(e) any conditions that apply to the licence;
(f) for a mortgage brokerage, the name of the principal broker;
(g) for a mortgage lender or mortgage administrator, the name of the
compliance officer;
(h) the details of any administrative or other penalties imposed by the Registrar
under subsection 73(1) of the Act.
(2) All of the following information about each formerly licensed mortgage brokerage,
mortgage lender or mortgage administrator is prescribed as the information
required to be contained in the public register under subsection 7(2) of the Act:
(a) each name in which the former licensee was licensed and the corresponding
former licence number;
(b) the type of licence held;
(c) the date the former licensee ceased to be licensed;
(d) whether the licence expired, renewal of the licence was refused, the licence
was surrendered or the licence was revoked;
(e) the details of any administrative or other penalties imposed by the Registrar
under subsection 73(1) of the Act.
(3) The information recorded under subsection (2) must be kept in the public register
for at least 2 years after the date the licensee ceased to be licensed.
Public register of mortgage brokers and associate mortgage brokers
16 (1) All of the following information about each licensed mortgage broker and
associate mortgage broker is prescribed as the information required to be contained
in the public register under subsection 7(2) of the Act:
(a) the name in which the licensee is licensed and the corresponding licence
number;
(b) the type of licence held, its expiry date and whether the licensee is in good
standing or the licence is suspended;
(c) the name of the mortgage brokerage on whose behalf the licensee is
authorized to broker mortgages;
(d) the details of any administrative or other penalties imposed by the Registrar
under subsection 73(1) of the Act;
(e) any conditions that apply to the licence, other than conditions relating to
educational requirements.
(2) All of the following information about each formerly licensed mortgage broker and
associate mortgage broker is prescribed as the information required to be contained
in the public register under subsection 7(2) of the Act:
(a) the name in which the former licensee was licensed and the corresponding
former licence number;
(b) the type of licence held;
(c) the name of the mortgage brokerage on whose behalf the former licensee
was authorized to broker mortgages immediately before ceasing to be
licensed;
(d) the date the former licensee ceased to be licensed;
(e) the details of any administrative or other penalties imposed by the Registrar
under subsection 73(1) of the Act;
(f) whether the licence expired, renewal of the licence was refused, the licence
was surrendered or the licence was revoked.
(3) The information recorded under subsection (2) must be kept in the public register
for at least 2 years after the date the mortgage broker or associate mortgage broker
it pertains to ceased to be licensed.
The following regulations are not
yet in force and are not included in the current consolidation: