A licensed mortgage agent is considering offering mortgage brokering services through a new corporation they solely own. Under the MBLAA, which of the following is required for this new corporation to operate legally as a mortgage brokerage?

Question: A licensed mortgage agent is considering offering mortgage brokering services through a new corporation they solely own. Under the MBLAA, which of the following is required for this new corporation to operate legally as a mortgage brokerage?

Answer options: ✅ The corporation must itself be licensed as a mortgage brokerage by FSRA.

• The mortgage agent's existing individual license is sufficient, provided they disclose their ownership.
• The corporation only needs to register with the Ontario Business Registry, not FSRA, if the agent holds a valid license.
• A principal broker associated with the mortgage agent's license must approve the new corporation's operation.

Correct answer: The corporation must itself be licensed as a mortgage brokerage by FSRA.

Explanation: Section 2(1) of the MBLAA states that 'No person shall carry on business as a mortgage broker or mortgage agent unless the person is licensed under this Act.' A corporation acting as a brokerage is considered a 'person' under the Act and must hold its own license, separate from any individual agent's license, to operate legally.