New legislation governing mortgage brokers is to take effect July 1, 2008, according to the Financial Services Commission of Ontario.

FSCO says that a four-month transition period will begin on March 3, 2008, which will enable mortgage brokers registered under the current act, and mortgage agents, to apply for a license in anticipation of the new act.

First, brokerages will need to apply for a brokerage license from FSCO. Licensed brokerages will then be able to initiate and submit applications for their agents and brokers.

FSCO says it is conducting a technical review of mortgage agent and broker proficiency that would complement the new legislative measures to ensure consumer protection.