Personnel files
Head office will maintain a file for every broker or agent authorized to deal in mortgages on behalf of the company. This file will contain copies of the representative’s qualifications, copy of photo identification, up to date contact information, and all other documents as deemed necessary during the hiring process. The file will also include any third-party contracts between RMA, a broker/agent, and their personal corporation and with any lenders as required.
The personnel file should also include an acknowledgment that the broker/agent has received a copy of the company's policies and procedures and agrees to comply with same.
For any new employees joining the company, a resume will be included in addition to the above information. The Compliance Officer will process the license application for new hires within five days of their joining the company. New hires will not be permitted to carry on the business of dealing in mortgages until their application has been approved by FSCO.
Personal corporations
Should a broker or agent require that payment for services be paid to a corporation as opposed to themselves directly, a number of agreements must be in place before any funds can be advanced. The agreements must be in full compliance with the regulations of MBLAA 2006, in addition to agreements between the agent/broker and their personal corporation, which also signifies compliance with the legislation. The corporation may not receive any compensation for mortgage related activities from any source other than RMA.
Use of third-party payroll service
Should an agent or broker choose to utilize the services of a third-party payroll provider, an agreement must be in place between RMA, the broker/agent, and their personal corporation directing payment of funds to that third-party provider.
Receipt of non-cash consideration
A broker or agent who receives nonmonetary compensation (basis points, reward points, or other rewards) directly from a lender must complete a three party agreement between themselves, the lender and RMA, whereby RMA acknowledges payment of those items directly to the broker/agent and does not object to same.
Restriction on Commissions by the Brokerage
REAL MORTGAGE ASSOCIATES INC. will make no mortgage commission payments to a broker or agent licenced with another brokerage. All compensation earned on mortgage applications co-brokered will be paid directly to the referring brokerage and not an individual Broker or Agent.
