Under the BC Mortgage Brokers Act, how does a person become authorized to act as a submortgage broker?
Correct Answer
D) Register with the registrar while employed by a registered mortgage broker
Mortgage Brokers Act s. 21(1)(a) prohibits carrying on business as a submortgage broker without registration, and s. 3(2) requires the application to be made to the registrar (the Registrar of Mortgage Brokers appointed by BCFSA). By definition (s. 1), a submortgage broker is employed by, or is a director or partner of, a mortgage broker, and ending that employment suspends the registration (s. 3(8)).
Why This Is the Correct Answer
This answer is correct. A submortgage broker must be registered under the Act by the registrar (ss. 3(2), 21(1)(a)) and must be employed by, or be a director or partner of, a registered mortgage broker (s. 1 definition). Section 21(1)(d) also forbids a mortgage broker from employing an unregistered person as a submortgage broker.
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