O. Reg. 153/15: MORTGAGE BROKERAGES: STANDARDS OF PRACTICE

Link to law: http://www.ontario.ca/laws/regulation/r15153
Published: 2015-06-18

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ontario regulation 153/15

made under the

Mortgage Brokerages, Lenders and Administrators Act, 2006

Made: June 17, 2015
Filed: June 18, 2015
Published on e-Laws: June 18, 2015
Printed in The Ontario Gazette: July 4, 2015


Amending O. Reg. 188/08

(MORTGAGE BROKERAGES: STANDARDS OF PRACTICE)

1. Sections 12 and 13 of Ontario Regulation 188/08 are revoked and the following substituted:

Duty re unlawful transactions

12. A brokerage shall not act as a representative of a borrower, lender or investor in respect of a mortgage if the brokerage has reason to doubt that the mortgage, its renewal or the investment in it is lawful.

Duty re borrower’s legal authority

13. A brokerage shall take reasonable steps to verify a borrower’s legal authority to mortgage a property, and if the brokerage has reason to doubt the borrower’s legal authority, the brokerage shall so advise each prospective lender at the earliest opportunity.

2. The Regulation is amended by adding the following sections:

Continuation of duty

14.1 The duty to advise a lender under sections 13 and 14 continues with respect to the lender after the borrower enters into the mortgage agreement or signs the mortgage instrument or a mortgage renewal agreement, as the case may be, with the lender.

Dishonesty, fraud, etc.

14.2 A brokerage shall not act, or do anything or omit to do anything, in circumstances where the brokerage ought to know that by acting, doing the thing or omitting to do the thing, the brokerage is being used by a borrower, lender, investor or any other person to facilitate dishonesty, fraud, crime or illegal conduct.

3. Subsection 27 (1) of the Regulation is amended by striking out “any conflict of interest” and substituting “any conflict of interest or potential conflict of interest”.

4. Subsection 37 (1) of the Regulation is amended by striking out “$300,000” and substituting “$400,000”.

5. (1)  Paragraph 5 of subsection 40 (3) of the Regulation is amended by striking out “potential conflicts of interest” and substituting “conflicts of interest or potential conflicts of interest”.

(2)  Subsection 40 (3) of the Regulation is amended by adding the following paragraph:

8. Fraud prevention, including ensuring compliance with sections 12 to 14.2.

Commencement

6. This Regulation comes into force on the later of January 1, 2016 and the day it is filed.

 

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