Government of Saskatchewan
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Saturday, June 24, 2017
Financial and Consumer Affairs Authority

The Trust and Loan Corporations Act, 1997 (the “T&L Act”) provides the legislative framework for the regulation loan brokers.

A loan broker is a person (individual, corporation or partnership) that provides services or products to a consumer in obtaining a loan from another person.  Services include referring a consumer to a lender, referring a lender to a consumer, or providing a lender or consumer with information about the other.

Persons involved with a loan of money made on the security of real property are not loan brokers.  When real property is involved, The Mortgage Brokerages and Mortgage Administrators Act will apply and a licence under this legislation may also be required.

If you are seeking registration as a loan broker, you must:

  • Submit a completed application form;
  • Provide all of the supporting materials described in the licensing kit;
  • Remit the $500 initial review fee;
    Remit the $500 registration fee (note: this fee will be refunded if your application is refused). 

Loan brokers are prohibited from requiring or accepting any payment from a consumer unless:

  • The loan broker is registered;
  • The loan broker provides the consumer with the written disclosure required by the legislation; and
  • The consumer has actually received the proceeds of the loan.

Every arrangement or agreement that does not meet these three criteria is void.

The T&L Act contemplates every loan broker, other than those exempted by the Superintendent, as having a bond in the amount and form prescribed by the Superintendent.  This information will be communicated to an applicant upon review of the applicant and their proposed business model.

 



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