Only 56 per cent of brokers have applied for license renewal

Only 56 per cent of brokers have applied for license renewal

Only 56 per cent of brokers have applied for license renewal Are we in for a major broker or agent cull or are mortgage professionals just procrastinators?

The latest data from the Financial Services Commission of Ontario (FSCO) points to a mere 56 per cent renewal rate among brokers leading up to the March 31 deadline to submit license renewal applications. That falls to 46 per cent for agents.

However, principal brokers are faring slightly better, with a reported 60 per cent already having submitted applications for renewal.

In 2012 – the last time brokers were up for relicensing – a mere 72 per cent of brokers had registered by the cut-off date. It remains to be seen if 2014 will report similar statistics.

According to an official release from FSCO: If the principal broker does not submit licence renewal applications for brokers and agents by March 31, 2014:

The mortgage brokers' and agents' licences will expire on March 31, 2014.
The mortgage brokers and agents will not be authorized to deal or trade in mortgages after March 31, 2014.
The mortgage brokers and agents will need to apply for a new licence and pay the new applicant fee, if they wish to conduct mortgage brokering activities.

See below for the most up to date stats.

13 Comments
  • Ron Butler 2014-03-24 12:00:00 PM
    It's just plain funny, 7 days before the deadline and 40% of the people who actually operate the brokerages, the principal brokers, have not bothered to renew. We have to assume most brokerage operators will renew so it comes down not being organized enough to process the renewal in a businesslike manner. Why would any business person risk a suspension of registration by overloading the system at the last minute? If you were FSCO would they see this as a reflection of the way they those broker principals operate their businesses?
    Post a reply
  • Steve Clark 2014-03-24 12:27:42 PM
    Last year at this time I was hopeful there would be a "cull" and this year is no different. There are too many mortgage agents in Ontario. Although there is a renewal course, licensing, regulations and costs, the barriers to entry are way too low. If a mortgage agent licence was treated as a privilege earned and valued as such, the real professionals remaining will only strengthen the industry.
    Post a reply
  • John Benstead 2014-03-24 1:46:57 PM
    I completely agree with Steve Clark.

    There appears to be a total disconnect between the average agent and the simple idea of professionalism. I would love to know how much better, our industry, would be if the entry was severely raised by making the exam very much more difficult, as OREA did around 8 or so years ago.
    Our young and small brokerage is seriously considering changing our hiring practices, in order to have a little 'cull" of our own.
    Post a reply