With simply days remaining, the Monetary Companies Regulatory Company of Ontario (FSRA) says hundreds of Ontario brokers and brokers nonetheless haven’t accomplished two training programs required to keep up their present licences.

FSRA is reminding Ontario mortgage professionals that they won’t obtain their licence if they don’t cross the necessary persevering with training course by March 31, 2024. The course sometimes takes about 5 to seven hours to finish.

As of final week, FSRA mentioned 7,122 folks had but to finish the persevering with training course.

Wendy Horrobin, FSRA’s head of licensing and danger evaluation, mentioned these numbers have been shrinking week after week as professionals ebook their exams, however confused the implications of lacking the deadline.

“We’re definitely urging all brokers and brokers to essentially act now in the event that they haven’t already began,” Horrobin mentioned. “Time is of the essence at this level, given the date within the month that we’re in.”

Hundreds but to finish personal mortgage course

On prime of the persevering with training course, March 31 can be the deadline to finish the personal mortgage course and obtain a Stage 2 licence.

Beneath the brand new Ontario licensing system launched by FSRA in 2022, a stage 2 licence will probably be required by March 31, 2024, for brokers and brokers desirous to deal with each personal mortgages and investments for personal buyers and mortgage lenders.

This class takes roughly every week in fact work to finish, Horrobin mentioned, and in addition requires brokers to schedule and efficiently cross the examination.

FSRA mentioned 5,560 folks had but to finish their personal mortgage course as of final week.

Mortgage brokers (together with principal brokers) who don’t full the personal mortgage course by March 31 could have their licences downgraded to a stage 1 standing and received’t be allowed to deal in personal mortgages.

Horrobin mentioned in addition they received’t have the ability to reapply for a Stage 2 licence straight away. These reverting to Stage 1 might want to wait at the very least a yr earlier than retaking the course. For brokers, it might take as much as three years to rebuild their credentials, based on FSRA, and should considerably disrupt a brokerage’s enterprise. That is very true within the case of principal brokers.

New necessities improve protections for customers and buyers

FSRA and the federal authorities created the present licensing system again in 2022, with enhanced instructional necessities for any brokers and brokers working with personal mortgage lenders and elevating capital as a part of their work.

Based on the regulator, the brand new necessities higher defend customers and buyers by guaranteeing brokers and brokers are in a position to give applicable recommendation when coping with personal mortgages.

Since asserting the brand new necessities in 2022, FSRA mentioned it frequently reached out to principal brokers, brokers, and Stage 2 brokers to remind them of its new licensing necessities.

That included calling 40 particular person principal brokers at Ontario’s largest brokerages, holding two FSRA webinars with 1,300 members, and sending out month-to-month reminders in licensed communications by FSRA itself.

Between October 2023 and March 2024, FSRA mentioned it despatched out 58 e-mail reminders and publication articles in its licensing communications. Further assets are additionally accessible on FSRA’s web site.

Mortgage Professionals Canada, together with the Actual Property and Mortgage Institute of Canada and the Canadian Mortgage Brokers Affiliation – Ontario, are the three organizations authorized to supply each the persevering with training and personal mortgage programs. The persevering with training course turned accessible final November whereas the personal mortgages course has been accessible since early 2023.

Whereas March tends to be a busy interval for brokers and brokers trying to renew their certification, Horrobin mentioned final yr’s numbers recommend most professionals do full their renewals on time.

She hopes that may proceed this yr, however warns the method might take a bit of longer this yr. That’s as a result of renewals on “odd” years solely require brokers and brokers to pay their charge and submit data to FSRA, whereas even years, like this yr, additionally require that they full the persevering with training course.

“Final yr, we had one in every of our highest on-time renewals, that means many brokers and brokers did renew on time, and efficiently accomplished all the necessities there,” Horrobin mentioned. “Provided that there are a number of additional necessities this yr, it’s actually vital to get them accomplished properly forward of the March 31 deadline.”