1. The Application Process

Transcription

1 Criteria for Approving New Mortgage Associate Education Programs and Mortgage Brokerage Education Programs under The Mortgage Brokerages and Mortgage Administrators Act (the Criteria ) The Saskatchewan Superintendent of Financial Institutions (the Superintendent ) has established the Criteria for approving Mortgage Associate Education Programs and Mortgage Broker Education Programs (collectively referred to as the Education Programs ). Interested education providers are asked to submit an application, following the process set out below, that demonstrates their proposed programs meet the stated criteria. The Criteria were developed to ensure consistency in the Education Programs offered by different providers and to ensure that individuals applying to become mortgage brokers or associates meet minimum standards of knowledge at the time of licence application. The Education Programs are to be offered commercially and not on behalf of the Superintendent or the Saskatchewan Financial Services Commission. The Superintendent will approve those aspects of the Education Programs relating to the Criteria set herein, but education providers are responsible for any other course content and each licence applicant is responsible for choosing the course that best suits his or her needs, from the list of approved Education Programs. 1. The Application Process If your organization is interested in becoming an approved Education Program provider, you will need to submit an application to the Superintendent that identifies the means by which you plan to meet the Approval Criteria, below. In assessing applications, the Superintendent s threshold question is Can the applicant deliver a quality educational program as demonstrated by past experience? Applications that do not demonstrate sufficient experience in delivering educational programs will not be considered further. If you are not certain that your organization has sufficient educational experience, you are strongly encouraged to submit a description of your experience for the Superintendent s review before expending the resources to produce a full application. Experienced educators seeking approval of an Education Program are encouraged to submit an application to the Superintendent s review as soon as possible. Applications will be reviewed in the order they are received. Approved Education Programs will be posted on the SFSC website ( to notify potential brokers and associates of approved course options. The licensing requirement to complete an appropriate education program will come into force on October 1,

2 Applications should include the following: (a) a brief description of the applicant; (b) a list of services that the applicant has previously and/or is currently delivering, with an emphasis on experience relevant to mortgage associate and/or mortgage broker education; (c) the names, qualifications (accreditations, experience), roles and responsibilities of the applicant s agents, employees and/or subcontractors who will be involved in providing the program; (d) particulars of the applicant s knowledge, skills and expertise as demonstrated in the following areas: curriculum development with measurable objectives and the provision of adult education; evaluation or development of education programs, preferably in the financial sector; working with subject matter experts to integrate first-hand knowledge of the industry with education expertise; knowledge of the mortgage brokering sector; and ability to provide concise, accurate and timely reports. Appendix A provides guidance to help you assess whether your organization has the necessary knowledge, skills and expertise to become an approved provider of an Education Program. (e) a copy of the specific course curriculum indicating teaching methods and learning activities (such as case scenarios, reading assignments, etc.) that will be used to teach the learning objectives set out in the Mortgage Associate Qualifying Standards and Mortgage Broker Qualifying Standards (collectively referred to as the Qualifying Standards and attached as Appendix B). Please provide this information in the form of a concordance table, cross-referencing the curriculum with each learning objective set out in the appropriate Qualifying Standard. Please include an estimate of the time required to teach each learning objective. Although the Superintendent has not imposed a minimum number of course hours, any proposal whose time estimates vary significantly from other proposals will receive careful scrutiny. Also include an example of at least four of the multiple choice examination questions and answers that will be used to assess the students knowledge. (f) a summary of the standards, policies and procedures in place for providing the course, administering the examination, ensuring the security of the examination and test questions against theft, loss, and cheating, ensuring accuracy in scoring examinations and the process available to students seeking an appeal; 2

3 (g) education providers who include course content in addition to the Qualifying Standards (such as sales or marketing, etc.) must separate the additional content from the Qualifying Standards and not intersperse it with the Qualifying Standards which the Superintendent regulates. It is not necessary to include such additional content in the application for approval; (h) if your organization intends to partner with one or more other providers, you must specify this in the application. The Superintendent s approval will not extend to cover partners unless the role of the partner is described; (i) the program form (i.e. in person, online, correspondence etc.) and a list of the locations within Saskatchewan where the course and examination will be offered; and (j) whether you are applying for approval of a Mortgage Associate Education Program, a Mortgage Broker Education Program or both. 2. The Approval Criteria (a) The Program course and examination (i) The provider must demonstrate that it has the capacity and competence to deliver a quality program based upon what it has done in the past. (ii) There must be no difference in the tuition for services in different locations. (iii) The proposed course must cover all of the learning objective identified in the relevant Qualifying Standard. The provider is responsible for the technical accuracy of the program. The provider may determine the course delivery format (classroom, correspondence, online or any combination of the three). (iv) The provider is responsible for publicizing the program and for maintaining current information about the program, including when and where it is available, on a website. (v) The course must provide training, not simply preparation for passing an examination. The provider must describe the learning activities that will be used to teach each of the learning objectives in the Qualifying Standards (for example case scenarios, multiplechoice or essay testing on material read, problem-solving, etc.). (vi) The course must incorporate a final 3-hour, supervised, closed-book examination with at least 50 questions that test all of the learning outcomes that are in the Qualifying Standards, with reference to the listed learning objectives. Students must successfully complete the entire course before writing the examination. (vii) The provider will employ a database of multiple-choice examination questions with four possible answers for each question, and only one correct answer. The database must 3

4 be large enough to use completely different sets of examination questions for different examination sittings. (viii) The passing grade will be 60%. No rounding of marks is permitted. Each correct answer shall have the same weight toward the final score. No penalty is given for wrong answers, or for no answer. (ix) A student who fails the examination may take the examination one additional time without repeating the course. The second examination must contain a completely different set of questions from the first examination. If the student is not successful after the second attempt, the student must repeat the course before writing the examination again. (b) Examination administration (i) The provider will provide examination sites that are designed to minimize the opportunity for candidates to cheat by providing for supervised examinations and marking templates. Each examination and corresponding marking template will have a unique number. (ii) The provider must have standards, policies and procedures in place for: administering the examination; ensuring the security of the examination and test questions against theft, misuse and cheating; ensuring accuracy in scoring examinations; maintaining security of all databases and electronic systems; and student appeals. (iii) The provider shall not release any of the examination material publicly, nor to any party except the Superintendent, markers and students when they sit to write the examination. None of the examination material may be copied, transcribed or removed from the examination room, except by the supervisor. (iv) To be admitted to the course and to write the examination, the student must supply a valid government-issued photo identification (for example a Canadian passport, driver s licence, citizenship card, permanent resident card) along with a signed secondary piece of identification (for example a credit or debit card, health card). (v) The provider will inform all students that the identical name must be used to enroll in the course, to register for the examination and to apply for a mortgage associate or mortgage broker licence. The Superintendent will not issue a licence in any other name. (vi) Cell phones, PDAs (personal digital assistants), pagers, watch alarms, etc. are not allowed to be turned on or used during the examination. 4

5 (vii) The provider will advise each student of the results of the student s examination within one week of the student s completion of the examination. (c) Records, reporting and administration (i) The provider will maintain an examination question database, a results database and a student database. (ii) The provider will maintain security of all databases, electronic systems and examination material. (iii) The provider must keep reliable records enabling it to provide each student with a transcript of his or her marks and an original certificate indicating successful completion of the course and examination. The provider must retain these records securely for at least six years. (iv) The provider will provide a Certificate of Completion (the Certificate ) to each student who has successfully completed the course and passed the examination. The Certificate will contain the name of the provider, the student s full name matching the name on the student s photo identification, the date the Certificate was issued, and the provider s authorized signature. The provider will submit a copy of the Certificate form with its application for program approval. (v) The provider will implement and maintain a system for students evaluation of the program. (vi) The provider must provide students marks to the Superintendent in a digital form using a Microsoft Excel spreadsheet following the prescribed format. (vii) The provider must maintain and regularly provide to the Superintendent statistics showing how many students have taken the program and how many have passed. The provider must provide the Superintendent with the transcript of a particular student/licensee upon request. The provider will answer questions asked by the Superintendent. (viii) The provider must commit to ongoing monitoring of the program, auditing of the provider s processes and related technology, and compliance with all approval standards. 3. After Approval (a) Education Programs that meet the Criteria set out above to the satisfaction of the Superintendent will be approved. The Superintendent and the education provider will sign a Letter of Intent setting out the terms and conditions under which the program is approved. A sample Letter of Intent is provided in Appendix C. 5

6 (b) Providers are responsible for the technical accuracy of their material and for ensuring that the program remains current. The Superintendent will notify providers when legal or policy changes are made that affect the material being taught. (c) The Superintendent s approval of a program continues until it is revoked by the Superintendent. Should the Superintendent have concerns, the Superintendent will discuss the issue and corrective action with the provider. Providers will comply with the Superintendent s requirement for corrective action within a reasonable period of time or the program approval will be revoked. (d) For auditing purposes, upon the Superintendent s request, providers will admit up to three representatives of the Superintendent to each program sitting without charge. (e) Providers must report to the Superintendent the number of students per course and per examination, as well as student pass and fail rates, by no later than March 1 of the year following the year reported. (f) The Superintendent will review these approval criteria every three years. 6

7 Appendix A Additional Information regarding the Applicant s Knowledge, Skills and Expertise The information below is provided to help you assess whether your organization has the necessary knowledge, skills and expertise to become an approved education provider. This information is provided as guidance only. It is intended to provide more details about what is expected in a successful application for approval as an approved education provider. The Superintendent s threshold question is Can the applicant deliver a quality educational program as demonstrated by past experience? Without sufficient educational experience, applications will not be considered further. If you are not certain that your organization has sufficient educational experience, you are strongly encouraged to submit a description of your experience for the Superintendent s review before expending the resources to produce a full application. Item 1 (d) the applicant s knowledge, skills and expertise The following list provides examples of the kinds of skills and background that experienced educators should be able to cite in an application for approval. A description of programs the applicant has designed that include setting out specific teaching methods (such as lectures, case scenarios, problem-solving, reading and essay assignments, etc.) to teach material at different cognitive levels. A description of the applicant s experience in adult education, identifying any experience teaching in the financial services sector. A description of the applicant s experience designing and testing multiple choice examination questions. A description of the applicant s experience evaluating education programs, analyzing problem questions and exam results, and providing accurate and timely reports. A description of the applicant s experience working with subject matter experts and industry participants to ensure that the course material integrates knowledge of the sector and reflects marketplace realities. 7

8 Appendix B Qualifying Standards for Mortgage Associates and Mortgage Brokers References: Act The Mortgage Brokerages and Mortgage Administrators Act Regulations The Mortgage Brokerages and Mortgage Administrators Regulations PIPEDA The Personal Information Protection and Electronic Documents Act Qualifying Standards for Mortgage Associates Stream Outcomes Objectives A. Applications A 1 Analyze the contextual framework in which mortgages are transacted in Saskatchewan A 2 Determine borrower s needs. A 3 Qualify the borrower A 1.1 Explain the roles of the various participants in the mortgage brokerage industry. A 1.2 discuss the parameters of the associate s advisory role in interactions with borrowers and with private lenders. A 1.3 Explain the market in which mortgages are transacted in Saskatchewan. A 1.4 Explain the steps involved in the application process. A 1.5 Describe the procedures for mortgage lending and servicing. A 1.6 Explain the components and mechanics of a mortgage. A 1.7 Discuss the means by which present and future values of cash flows are calculated. A 1.8 Explain how interest and principal portions of payments and payment streams are calculated. A 1.9 Analyze the requirements process, security documentation and remedies for residential and commercial mortgages. A 1.10 Review and print communications used in the industry such as product manuals, publications and rate sheets. A 2.1 Analyze the role of the associate as advisor and the principles and techniques involved in needs analysis to assess product suitability. A 2.2 Assess borrower documentation. A 2.3 Working with case studies, select the most appropriate mortgage products and strategies to match a specific client s needs. Include information that may impact the selection of the suitable mortgage product including: whether the mortgage loan is conventional or high ratio; the interest rate; whether the interest rate is variable or fixed; whether the interest rate for a fixed term mortgage loan, or the formula for calculating it for a variable rate mortgage loan, may change during the term of the mortgage loan; the term of the mortgage loan; whether the mortgage loan is closed, partially open or fully open; the amortization period; if the mortgage involves mortgage refinancing any prepayment penalties and the financial impact of mortgage refinancing; and any other options or distinguishing features of the available mortgage loans. A 3.1 Describe the mortgage underwriting process. A 3.2 Explain the role of appraisals in determining value. 8

9 B Compliance and Consumer Protection A 4 Obtain Commitment from an appropriate lending source. A 5 Disclose terms and conditions to borrower. A 6 Facilitate the mortgage closing process. B 1 Recognize the impact of regulation and legislation on the mortgage industry in Saskatchewan. A 3.3 Read an appraisal to determine how value was assessed. A 3.4 Explain the purpose and content of documents related to the mortgage application process. A 3.5 Discuss the role of the credit report in validating an application. A 3.6 Assess the impact of a given credit report on an application. A 3.7 Gather supporting documentation to qualify a client against lender guidelines (e.g., financial statements, notice of assessments, net worth statements). A 3.8 Perform required calculations to qualify the borrower. A 3.9 Discuss the circumstances in which an application is rejected or referred elsewhere. A 3.10 Analyze a scenario to identify potential solutions to the borrower s requirements. A 3.11 Complete all documentation accurately and completely. A 4.1 Discuss difference in submitting applications to private and institutional lenders. A 4.2 Explain the advantages and disadvantages of mortgage as investment. A 4.3 Discuss strategies for completing an application so lenders can make an informed decision. A 4.4 Explain the documentation and analysis required to make a competent decision to lend or not to lend. A 4.5 Recognize when to seek help from a broker. A 4. 6 Explain private, commercial and residential mortgage transactions. A 4.7 Submit applications to an appropriate lender in accordance with lender requirements. A 4.8 Describe the purpose and content of the forms used to make disclosure to the borrower and lender. A 4.9 Review the commitment letter for institutional lenders to address a given application in accordance with lending practices. A 4.10 Prepare a letter of commitment for a private lender. A 5.1 Explain the terms, conditions, costs and strategies of the commitment clearly and effectively to the borrower. A 5.2 Describe the need for and implications of obtaining proper dates and signatures on documents from the borrower. A 5.3 Review The Cost of Credit Disclosure Act, 2002, and explain the Cost of Credit disclosure, reviewing all terms and costs with the borrower. A 5.4 Complete a Cost of Credit disclosure form. A 5.5 Explain the special features and legislative disclosure requirements that apply to reverse mortgages. A 6.1 Describe the methods used to track and monitor applications. A 6.2 Discuss the terms and conditions that must be fulfilled by the associate within the lender timeframes. A 6.3 Prepare documents for the insurance company, as applicable. (Ensure proper licensing is in place, see also B 1.14 (b) of the Qualifying Standards for Mortgage Associates). A 6.4 Review lender and borrower documents for consistency and accuracy. B 1.1 Explain the licensing requirements and obligations under the legislation for mortgage brokerages, brokers, associates and administrators in Saskatchewan and licensing exemptions. B 1.2 Describe the statutory reporting and filing requirements for mortgage brokerages, brokers and associates. 9

10 B 1.3 Explain an associates disclosure obligations to a client as outlined in the Act and Regulations: (a) disclosure obligations to the borrower: (i) suitability of mortgage (ii) conflict of interest (b) disclosure obligations to private investors: (i) suitability of investment (ii) conflict of interest B 1.4 Explain the role of the Superintendent as the industry s regulator. (a) Explain the Superintendents powers under the Act and when such powers would be exercised. (b) Examine offences and actions that the Superintendent can take to enforce the Act, including: Special Penalties Administrative penalties Compliance Orders Costs Suspension and cancellation of a licence Automatic suspension of a licence Refusal to a licence or endorsement Imposing terms and conditions on a licence Orders to increase capital requirements (c) Examine the court actions that can be taken by the Superintendent to enforce the Act, including: Offences Compliance Orders Destruction of evidence Costs (d) Explain the fee structure for licensing. B 1.5 Discuss the practice standard obligations of an associate under federal and Saskatchewan legislation relevant to the operation of mortgage brokerages. Include specific reference to the associates obligation to act in the best interest of the borrower. B 1.6 Recognize Fraud. B 1.7 Explain requirements to verify the identity of the borrower, lender and investor, and the accuracy of information contained in mortgage documents as a strategy for fraud prevention. B 1.8 Summarize the standards related to advertising and communications made to the public that apply to the mortgage brokerage industry. Include reference to the requirement to use the proper licensing designation of mortgage associate and mortgage broker, as the case may be. 10

11 B 1.9 Explain the different types of lenders authorized to lend in Saskatchewan and the source of the entities authority to lend: (a) banks and authorized foreign banks as defined in the Bank Act (Canada); (b) credit unions incorporated, continued or registered pursuant to The Credit Union Act, 1998; (c) trust, loan and financing corporations holding a valid licence pursuant to The Trust and Loan Corporations Act, 1997; (d) an insurer licensed pursuant to The Saskatchewan Insurance Act; and (e) private investors as defined in The Mortgage Brokerages and Mortgage Administrators Act. B 1.10 Describe foreclosure, sale under mortgage and other methods of realizing on mortgage debt. Include reference to impact on guarantors. B 1.11 Explain the notice requirements prerequisite to commencement of remedial proceedings. B 1.12 Assess transactions in the mortgage industry to assess compliance and consumer protection. B 1.13 Assess the consequences to a mortgage associate of failing to comply with applicable legislation and the Regulations in a given scenario. B 1.14 Examine activities that may be associated with mortgage brokering, draw distinctions between permitted and prohibited activities: (a) Explain the distinction between loan brokering and mortgage brokering and distinguish between the types of licensing required for each. (b) Explain the rules and regulations regarding the ancillary sale of insurance pursuant to The Saskatchewan Insurance Act and Regulations. (c) Explain what types of referrals are exempt, and what type fall under the legislation. B 2 Distinguish between ethical and unethical behaviours of brokers and associates. B 3 Examine the role of the Principal Broker B 4 Recognize the impact of the legal requirements related B 2.1 Describe the legal relationship between an associate, a broker and a lender on which ethical decision-making is based. B 2.2 Predict problems faced by mortgage associates (e.g. conflict of interest, misrepresentations, borrower/private investor s interest first) in which ethical choices must be made. B 2.3 Determine appropriate solutions to ethical issues in the mortgage brokerage industry. B 3.1 Describe the role of the Principal Broker as set out in the legislation and regulations and include reference to the document Summary of the Principal Broker Duties. B 3.2 Review the general duties of the Principal Broker. B 3.3 Review the mortgage brokerages responsibilities and the role of the principal broker in ensuring compliance. B 3.4 Review additional responsibilities respecting Mortgage Brokerages that hold an Endorsement allowing the Brokerage to handle Trust Funds. B 4.1 Describe the impact of estates and interests in land on the mortgage lending process. In particular, identify the impact of major life events 11

12 to the ownership and disposition of land and property on the mortgage industry. Make reference to the related legislation or source of legal authority, where applicable. B 5 Recognize the impact of tort law on the mortgage brokerage industry. including death, bankruptcy and marital/family breakdown, with reference to the applicable legislation. B 4.2 Describe the systems of land division and land registration in Saskatchewan including the electronic registration system as applied to the registration of charges and fraud implications. B 4.3 Describe the purpose and effect of purchase and sale agreements in the mortgage application process. B 4.4 Discuss government controls related to the use and disposition of land as applied to the mortgage lending process. B 4.5 Identify the elements of the following standard real estate transaction: purchase, sale and mortgage in order to ensure compliance with legislation. B 4.6 Explain the requirements of a condominium purchase that apply to the mortgage application process and compliance with legislation. B 4.7 Describe the legislation related to residential and commercial tenancies which affect the mortgage application process. B 5.1 Discuss the legal liabilities inherent in the mortgage application process that arise from statute and the common law. In particular address: Tort law; and Liabilities that arise from relationships (associate/broker/lender) including principles arising from agency law and fiduciary obligation. C Document Management B 6 Manage contracts and agreement in accordance with legislation including PIPEDA B 7 Review other legislation that impacts land transactions and borrowing C 1 Manage borrower and lender documentation Use case studies to provide practical examples of where liability may arise. Address ways to prevent problems through due diligence and compliance with the Act. Make reference to best interest of the client standard set out in the Act. B 6.1 Explain the role of contracts, essential components, and formal requirements for a contract to be valid. B 6.2 Describe the remedies for breach of contract. B 6.3 Discuss the conditions in which and process by which a contact may be lawfully terminated. B 6.4 Review contracts and agreements for adherence to compliance with regulatory requirements. B 7.1 Provide a broad overview of Saskatchewan legislation that impacts land transactions and borrowing, including specific reference to the following: The Saskatchewan Farm Security Act The Exemptions Act The Land Contracts (Actions) Act The Land Titles Act, 2000 The Agreements of Sale Cancellation Act The Family Property Act The Administration of Estates Act C 1.1 Describe the requirements related to documentation. C 1.2 Describe the need to maintain and retain documents for audit purposes. C 1.3 Describe strategies to maintain security and privacy of files. C 1.4 Discuss the use of electronic document management systems. C 1.5 Generate the documentation requirements in any given transaction in the application process. 12

13 Qualifying Standards for Mortgage Brokers Stream Outcomes Objectives A. Compliance and Consumer Protection A 1 Recognize the impact of regulation and legislation on the mortgage industry A 1.1 Review the roles of mortgage broker, mortgage associate and Principal Broker within the brokerage and in relation to each other with specific reference to the responsibilities each role has under the Act. A 1.2 Recognize requirements related to financial reporting and other reporting responsibilities identified in Regulations under the Act that apply to mortgage brokerages in Saskatchewan. (a) For a Mortgage Brokerage without Endorsement: All Mortgage Brokerages must file an annual return containing information applying to the period of June 1 to May 31 of the previous year, including: Changes to any information contained in the license application form that have not already been reported; Changes to any information contained in the previous annual return that have not already been reported; Confirmation that information previously filed remains accurate; Confirmation that the brokerage has complied with the Act since its last annual return or since its license was issued; and Any other information required by the Superintendent. Mortgage Brokerages that do not hold an Endorsement must also file a statutory declaration that contains: The name of the Mortgage Brokerage; The fiscal year to which the declaration relates; The name of the person swearing or affirming the statutory declaration and that person s relationship to the brokerage; and A confirmation that the brokerage did not receive or handle trust property during the fiscal year to which the statutory declaration relates. (b) For a Mortgage Brokerage with an Endorsement: In addition to the information that all Mortgage Brokerages must file, Mortgage Brokerages holding an Endorsement must also file a financial statement that includes the following: A written certification as to the accuracy of the financial statement made by two directors of the brokerage; A report prepared by an auditor that is satisfactory to the superintendent; and A report prepared by an accountant, pursuant to an engagement letter between the accountant and the brokerage that is in a form and contains the information required by the superintendent. A 1.3 Evaluate scenarios to determine potential conflict of interest of a brokerage, or associates under supervision, and identify steps to manage the conflict including disclosure. A 1.4 Supervise and approve representations to the public (including advertisement) of brokerage, brokers and associates to ensure compliance with the Regulations and other applicable legislation. A 1.5 Determine trust fund obligations of a brokerage. A 1.6 Assess the consequences for a brokerage when it or any of its authorized associates and brokers fail to comply with the Act and Regulations. A 1.7 Determine brokerage reporting obligations outlined in Regulations 13

14 B Hiring and Supervising Employees C. Company Systems, Policies and Procedures D. Applications A 2 Analyze transactions and documents of associates under supervision to ensure compliance and consumer protection. B 1 Select suitable associates and brokers in accordance with licensing requirements. B 2 Supervise associates and brokers to facilitate compliance with legislation and corporate policies and procedures. C 1 Employ planning strategies to address the legal requirements and the company s obligations to the consumer. D 1 Oversee applications submitted by associates and brokers under supervision. D 2 Ensure that a commitment is obtained from an appropriate lending source. related to broker or associate performance or licensing, and principal broker designations. A 2.1 Evaluate a scenario to identify possible fraudulent activity. A 2.2 Evaluate documents that do not meet compliance and consumer protection standards. A 2.3 Recognize fraud and identify the steps to take in response. A 2.4 Devise a plan for implementing policies and procedures to comply with consumer protection and standards of practice regulations. A 2.5 Recognize the responsibility of the brokerage for files and their security (including associates and brokers files) B 1.1 Discuss approaches for recruiting suitable associates and brokers. B 1.2 Perform background checks to determine who are suitable associates and brokers as per the Act. B 1.3 Make hiring decisions based on licensing requirements as per the Act and Regulations. B 2.1 Describe professional behaviours and ethical attitudes expected of mortgage brokers and associates. B 2.2 Evaluate a situation in which an associate or broker may be acting unethically and determine appropriate action. B 2.3 Describe the management cycle from hiring through to termination. B 2.4 Assess sources of current information related to professional development for the industry. B 2.5 Appraise associates and brokers regarding adherence and compliance to standards of practice regulations. B 2.6 Devise a plan to provide support to associates. B 2.7 Analyze the behaviour of associates and brokers to evaluate compliance with legislative and consumer protection requirements. B 2.8 Devise a plan to correct weaknesses related to legislative and consumer protection requirements. C 1.1 Review accountability to the regulator in relation to the management and operation of the brokerage. C 1.2 Evaluate a plan for implementing policies and procedures designed to ensure compliance with standards of practice regulations. C 1.3 Determine a brokerage s accounting system requirements to comply with regulations. C 1.4 Discuss methods used to ensure compliance of the brokerage and each broker and associate with the Act and Regulations. C 1.5 Determine the internal policies that should be in place to deal with and document complaints. C 1.6 Determine the policies that can be implemented to verify the identity of the borrower, lender and investor and the accuracy of information contained in mortgage documents to prevent fraud and ensure the protection of borrower lender and investor. D 1.1 Submit applications in accordance with institutional or private (as applicable) lender requirements. D 1.2 Ensure that applications are completed in a manner that enables lenders to make an informed decision. D 2.1 Analyze private mortgage applications. (a) Examine special legislative requirements for representing private investors, making particular reference to: (i) disclosure requirements, and (ii) acting in the best interest of the private investor. D 2.2 Using case studies, analyze scenarios to determine the suitability of a mortgage product for a lender or investor, and disclosure obligations toward the client including risks of product recommended. 14

15 Appendix C Mortgage Associate/Broker Education Program Provider Sample Letter of Intent Introduction The Mortgage Brokerages and Mortgage Administrators Act (the Act ) introduces new consumer protection measures and modernized the regulatory scheme for the mortgage broker industry. The Saskatchewan Superintendent of Financial Institutions (the Superintendent ) has established new educational standards for mortgage associate and mortgage broker licensing, and criteria for approving new mortgage associate and mortgage broker educational programs under the Act. Through this Letter of Intent with the mortgage associate educational program provider or mortgage broker educational program provider, as the case may be, (the provider ), the Superintendent seeks to establish the terms and conditions under which programs will be delivered. These terms and conditions relate to matters such as the review of course and examination content by the Superintendent, the acceptability of the course and examination, the delivery methods and learning activities employed, and recognition of the provider s Certificate of Completion. The Superintendent will: Publish on the Saskatchewan Financial Services Commission website a list of all approved providers who have signed the Letter of Intent; Be responsible for the curriculum design documents the Mortgage Associate Qualifying Standards and the Mortgage Broker Qualifying Standards (the Qualifying Standards ); Consult and communicate with the provider prior to making any changes to the Qualifying Standards or to the Criteria for Approving Mortgage Associate and Mortgage Broker Education Programs under the Act; Monitor the number of students who have taken the course and examination, and how many have passed or failed; and Discuss potential corrective action with the provider and identify, where necessary in the Superintendent s view, a suitable length of time for corrective action to be taken. If problems continue, the Superintendent may again discuss corrective action and timing, or withdraw approval of the program. The Provider will: Agree to teach 100% of the learning objectives outlined in the Qualifying Standards; 15

16 Submit the course and examination materials to the Superintendent, on request. This request could include any or all course materials, special learning aids, media specific variations and a cross-reference to the leaning objectives in the Qualifying Standards; Be responsible for the technical accuracy of the course and examination material and ensure the course and examination material remain current; Provide a Certificate of Completion in original form to the student that includes: The name of the provider; The full name of the student that is the same name as that under which the student will apply for a licence; The date on which the student successfully completed the examination; and The authorized signature of the designated representative of the Provider: (name of designated representative of the Provider); Comply with the Superintendent s requirements for corrective action; Provide the Superintendent with a report no later than March 1 of the year following the year reported or at such other times as requested by the Superintendent that includes the names of the students who have taken the course, the mark obtained by the student and the aggregate number of students that have taken the course, the number of students that have passed and failed and the average mark; Agree to these requirements by signing this Letter of Intent prior to receiving the Superintendent s approval of the Mortgage Associate or Mortgage Broker Education Program, as the case may be; and Abide by this Letter of Intent as the basis on which the Certificate of Completion will be accepted by the Superintendent. Application This Letter of Intent will take effect when it has been signed by the provider and signed by the Superintendent. Course Approved (choose one) Mortgage Associate Mortgage Broker Both 16

17 Provider Acceptance Name of Provider Official Superintendent Acceptance Name of Superintendent Signature Signature Title of Provider Official Date Date 17