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A principal broker is the individual designated by a licensed mortgage brokerage to hold ultimate responsibility for the brokerage’s compliance, supervision of its agents and brokers, and adherence to provincial mortgage regulations.
Every licensed mortgage brokerage must name one individual to be accountable to the regulator for how the brokerage operates. That principal broker is responsible for making sure the mortgage agents and brokers working under the brokerage are properly licensed, that deals comply with provincial rules, and that recordkeeping and complaint handling meet regulatory standards.
The role is typically held by someone who has progressed to the higher broker license tier rather than the entry-level agent license, and regulators such as FSRA treat the principal broker as the brokerage's main point of contact for licensing and conduct issues.
Required for every brokerage: provincial regulators require each licensed mortgage brokerage to name a principal broker (terminology and exact role vary slightly by province) accountable for compliance.
Supervises agents and brokers: the principal broker is responsible for ensuring that mortgage agents and brokers working under the brokerage are properly licensed and following the rules.
Regulator's primary contact: FSRA in Ontario, and equivalent regulators elsewhere, treat the principal broker as the brokerage's main point of accountability for licensing and conduct issues.
Usually an experienced license holder: the role is typically held by someone who has progressed to the higher broker license tier rather than the entry-level agent license.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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