Regulation - LGIC
Update to O. Reg. 407/07 - Exemptions from the Requirements to be Licensed
Regulation Number(s):
O. Reg. 407/07
Instrument Type:
Regulation - LGIC
Bill or Act:
Mortgage Brokerages, Lenders and Administrators Act, 2006
Summary of Decision:
The existing list of exempted motor vehicle dealership financing entities found in section 8.2 (2) of O. Reg. 407/07 under the Mortgage Brokerages, Lenders and Administrators Act was updated as it was out of date due to name changes, wind-ups, and corporate reorganizations. As well, some entities no longer engage in any activity that would require a licensing exemption.
A motor vehicle dealership financing corporation is exempt from the requirement to have a mortgage brokerage licence if it deals, trades or lends money on the security of eligible mortgages only and does not engage in other activities requiring a brokerage licence. A mortgage is an eligible mortgage if the borrower or guarantor is a registered motor vehicle dealer, the property secured is not a residential premise, and the loan is for the purposes of the dealership's business. A similar exemption is provided from the requirement to have a mortgage administrator's licence if the corporation administers eligible mortgages only and does not engage in other activities requiring a mortgage administrator's licence. For consumer protection purposes, the regulation lists the names of the motor vehicle dealership financing corporations exempt from licensing.
A motor vehicle dealership financing corporation is exempt from the requirement to have a mortgage brokerage licence if it deals, trades or lends money on the security of eligible mortgages only and does not engage in other activities requiring a brokerage licence. A mortgage is an eligible mortgage if the borrower or guarantor is a registered motor vehicle dealer, the property secured is not a residential premise, and the loan is for the purposes of the dealership's business. A similar exemption is provided from the requirement to have a mortgage administrator's licence if the corporation administers eligible mortgages only and does not engage in other activities requiring a mortgage administrator's licence. For consumer protection purposes, the regulation lists the names of the motor vehicle dealership financing corporations exempt from licensing.
Further Information:
Ontario Regulation 407/07
Proposal Number:
14-MOF006
Posting Date:
Summary of Proposal:
The existing list of exempted motor vehicle dealership financing entities found in section 8.2 (2) of O. Reg. 407/07 under the Mortgage Brokerages, Lenders and Administrators Act was updated as it was out of date due to name changes, wind-ups, and corporate reorganizations. As well, some entities no longer engage in any activity that would require a licensing exemption.
A motor vehicle dealership financing corporation is exempt from the requirement to have a mortgage brokerage licence if it deals, trades or lends money on the security of eligible mortgages only and does not engage in other activities requiring a brokerage licence. A mortgage is an eligible mortgage if the borrower or guarantor is a registered motor vehicle dealer, the property secured is not a residential premise, and the loan is for the purposes of the dealership's business. A similar exemption is provided from the requirement to have a mortgage administrator's licence if the corporation administers eligible mortgages only and does not engage in other activities requiring a mortgage administrator's licence. For consumer protection purposes, the regulation lists the names of the motor vehicle dealership financing corporations exempt from licensing.
A motor vehicle dealership financing corporation is exempt from the requirement to have a mortgage brokerage licence if it deals, trades or lends money on the security of eligible mortgages only and does not engage in other activities requiring a brokerage licence. A mortgage is an eligible mortgage if the borrower or guarantor is a registered motor vehicle dealer, the property secured is not a residential premise, and the loan is for the purposes of the dealership's business. A similar exemption is provided from the requirement to have a mortgage administrator's licence if the corporation administers eligible mortgages only and does not engage in other activities requiring a mortgage administrator's licence. For consumer protection purposes, the regulation lists the names of the motor vehicle dealership financing corporations exempt from licensing.
Contact Address:
95 Grosvenor, 4th Floor
Toronto, Ontario
M7A 1Z1
Toronto, Ontario
M7A 1Z1
Effective Date:
January 1, 2014
Decision:
Approved