Bill 39 - An Act to Amend the Mortgage Brokers Act

BILL 39

An Act to Amend the Mortgage Brokers Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Subsection 11(1) of the Mortgage Brokers Act, chapter 41 of the Acts of New Brunswick, 2014, is amended

(a) by repealing paragraph (d) and substituting the following:

(d) comply with any errors or omissions insurance requirements and any working capital requirements that are prescribed by regulation;

(b) by adding after paragraph (d) the following:

(d.1) successfully complete, within the time prescribed by regulation, any required education programs approved by the Director under subsection 11.1(2), or establish to the Director’s satisfaction that he or she has an equivalent combination of education and experience;

2 The Act is amended by adding after section 11 the following:

Education requirements

11.1( 1) The Director shall establish educational requirements and continuing education requirements for the purposes of this Act and the regulations.

11.1( 2) The Director may approve education programs and continuing education programs for the purposes of this Act and the regulations.

3 Paragraph 18(3)(d) of the Act is repealed and the following is substituted:

(d) the mortgage broker or mortgage associate has failed to successfully complete any required continuing education programs approved by the Director under subsection 11.1(2).

4 Section 23 of the Act is amended by adding after subsection (1) the following:

23( 1.1) A mortgage brokerage shall not make a designation under section (1) unless, in the opinion of the Director,

(a) the individual is suitable to perform the duties and responsibilities of a principal broker, and

(b) the proposed designation is not objectionable.

5 Section 29 of the Act is amended

(a) in subsection (1)

( i) by repealing paragraph (a) and substituting the following:

(a) a copy of an investor disclosure form or an investor renewal disclosure form provided by the Director containing the information prescribed by regulation, completed and signed by the mortgage brokerage;

( ii) in paragraph (b) by striking out the period at the end of the paragraph and substituting a semi-colon followed by “and”;

( iii) by adding after paragraph (b) the following:

(c) any other information, in writing, that an investor of ordinary prudence would consider to be material to a decision about whether to make the investment in the mortgage.

6 Section 39 of the Act is amended by adding after subsection (2) the following:

39( 3) The Director shall establish the method of calculating the amount of working capital required to be held by a mortgage brokerage or mortgage administrator under subsection (1).

7 Section 49 of the Act is repealed and the following is substituted:

Annual return

49( 1) Within the time prescribed by regulation, a licence holder shall provide the Director with an annual return that contains the information prescribed by regulation.

49( 2) The Director may require a licence holder referred to in subsection (1) to provide additional information or material that the Director considers necessary.

8 Subsection 89(1) of the Act is amended

(a) in paragraph (g) by striking out “and training and educational requirements”;

(b) in subparagraph (p)(i) by striking out “the investor disclosure form, or”;