My mortgage brokerage is currently not conducting mortgage business. Why is errors and omissions insurance necessary?

This is a licensing requirement that went into effect on July 1, 2008. This requirement applies to all licensed mortgage brokerages and is not dependent on whether or not your mortgage brokerage is conducting mortgage business. Having errors and omissions insurance is a condition of having a mortgage brokerage licence. Subsection 7(4) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA), together with section 42 of Ontario Regulation 188/08 - Mortgage Brokerages: Standards of Practice, requires licensed mortgage brokerages to have errors and omissions insurance with extended coverage for fraudulent acts, as a condition of holding a licence.  more

Subsection 7(4) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) and section 42 of Ontario Regulation 188/08 - Mortgage Brokerages: Standards of Practice require all licensed mortgage brokerages to have errors and omissions insurance with extended coverage for fraudulent acts. This is a licensing requirement that went into effect on July 1, 2008. This requirement is the same for all licensed mortgage brokerages and is not dependant on whether or not your mortgage brokerage is conducting mortgage business. Having errors and omissions insurance is a condition of having a mortgage brokerage licence.  more