Record-Keeping Regulations
made under Section 90 of the
Mortgage Regulation Act
S.N.S. 2012, c. 11
N.S. Reg. 130/2020 (effective November 1, 2021)
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Citation
Definitions
Prescribed records
Mortgage administrator’s monthly record of payments
Mortgage administrator’s trust records
Monthly trust account reconciliation records
Mortgage administrator’s records of mortgages
Prescribed manner of retaining records
Prescribed periods for retaining records
Prescribed locations for retaining records
Citation
1 These regulations may be cited as the Record-Keeping Regulations.
Definitions
2 In these regulations,
“Act” means the Mortgage Regulation Act”.
Prescribed records
3 In addition to the records required by clauses 42(2)(a) to (d) of the Act and, for a
mortgage administrator, Section 48 of the Act, all of the following are the prescribed
records that a mortgage lender, mortgage brokerage or mortgage administrator is
required by clause 42(2)(e) of the Act to keep:
(a) forms, reports, disclosures or other documents required to be completed
under the Act and regulations;
(b) complete and accurate records of all documents, correspondence and written
information of any type other than documents or correspondence, whether in
electronic form or otherwise, that a licensee provides to or receives from
another person with respect to a mortgage transaction or a mortgage
application;
(c) for a mortgage administrator, all of the following:
(i) monthly records of payments as described in Section 4,
(ii) trust records as described in subsections 5(1) and (2),
(iii) monthly trust account reconciliation records as described in
subsection 5(3) [Section 6],
(iv) records of mortgages as described in Section 7.
Mortgage administrator’s monthly record of payments
4 (1) A monthly record of payments prescribed by subclause 3(c)(i) must be prepared
monthly and set out all of the following:
(a) a reconciliation of the following with respect to mortgages being
administered, as the balances appear in the records of the mortgage
administrator for the month:
(i) the total of outstanding principal balances due from borrowers,
(ii) the total amount of principal balances owing to the lenders or the
investors;
(b) any difference between the balances referred to in clause (a) as of the last
day of the month, and a description of the reasons for the difference.
(2) A monthly record of payments referred to in subsection (1) must be signed and
dated by an officer of the mortgage administrator to indicate that they have
reviewed the record and certify that it is accurate.
Mortgage administrator’s trust records
5 (1) Trust records prescribed by subclause 3(c)(iii) must show all of the following:
(a) all trust money received and all transactions relating to the trust money;
(b) the unexpended balance of trust money held by the mortgage administrator
(i) in total, and
(ii) separately for each person on whose behalf the trust money is held.
(2) Trust records referred to in subsection (1) must include all of the following:
(a) a separate trust ledger for each person on whose behalf the mortgage
administrator holds trust money that shows all of the following in
chronological order:
(i) all receipts of trust money and all disbursements made out of trust
money with respect to the person,
(ii) for each receipt,
(A) the person the trust money was received from,
(B) the form or manner the trust money was received in, and
(C) the purpose the money was received for, including particulars
of the mortgage the trust money relates to,
(iii) for each disbursement,
(A) the person the trust money was disbursed to,
(B) the number of the cheque, or the confirmation number of the
electronic transfer, the trust money was disbursed by, and
(C) the purpose for the disbursement, including particulars of the
mortgage the disbursement relates to,
(iv) the unexpended balance held on behalf of the person immediately
after each receipt and disbursement;
(b) copies of all of the following:
(i) the deposit slip for each deposit to the trust account,
(ii) all cheques with respect to the account, including cancelled cheques,
(iii) all bank statements or passbooks for the trust account,
(iv) any documentary evidence of deposits and withdrawals with respect
to the trust account in addition to those referred to in subclauses (i) to
(iii).
Monthly trust account reconciliation records
6 Monthly trust account reconciliation records prescribed by subclause 3(c)(iii) must
reconcile the trust records referred to in Section 5 for each trust administered by the
mortgage administrator and must meet all of the following conditions:
(a) it must be reviewed by an officer of the mortgage administrator, who must
certify that it is accurate by signing and dating it;
(b) it must be prepared and reviewed by different individuals;
(c) it must be prepared, reviewed and certified monthly, no later than,
(i) if the mortgage administrator receives a monthly account statement
from the financial institution where the account is maintained, 30
days after the date the monthly statement is received, or
(ii) if subclause (i) does not apply, 30 days after the end of the month it
relates to.
Mortgage administrator’s records of mortgages
7 (1) Records of mortgages prescribed by subclause 3(c)(iv) must show all of the
following:
(a) all mortgages being administered on behalf of investors by the mortgage
administrator, and the original amount of each mortgage;
(b) separately for each mortgage being administered, all receipts and
disbursements of funds and all liabilities, income and expenses with respect
to the mortgage;
(c) for each mortgage being administered, the fractional interest or percentage
owned by any person.
(2) Records of mortgages referred to in subsection (1) must include a trust ledger for
each mortgage being administered that shows all of the following in chronological
order:
(a) the amount of money received from each person who has an interest in the
mortgage, the form or manner the trust money was received in and the date
the trust money was received;
(b) the amount of trust money advanced on the mortgage or the purchase price
of the mortgage, the form and manner the trust money was advanced or paid
in and the date the trust money was advanced or paid;
(c) the dates and amounts of any repayments received on the mortgage and the
name of the person the repayments are received from;
(d) the date and amount of any disbursement of trust money received under the
mortgage and the name of the person it was disbursed to;
(e) any liabilities, income and expenses relating to the mortgage other than
those referred to in clauses (a) to (d);
(f) the receipt or disbursement of any other trust money in connection with the
mortgage other than those referred to in clauses (a) to (d);
(g) the outstanding balance of the mortgage
(i) in total, and
(ii) separately for each person who has an interest in the mortgage.
Prescribed manner of retaining records
8 (1) The manner for retaining records set out in this Section is prescribed as the manner
required by subclause 42(3)(a)(ii) of the Act for retaining records.
(2) Each mortgage lender, mortgage brokerage and mortgage administrator must take
adequate precautions, appropriate to the form of its records to ensure the integrity,
security and accuracy of its records.
(3) Records must be filed and indexed in a manner that clearly identifies all of the
following for each mortgage transaction or mortgage application:
(a) the date and nature of the transaction or application;
(b) a description of the property affected by the mortgage that is sufficient to
identify the property;
(c) the names of all of the parties to the transaction or application.
(4) A mortgage lender, mortgage brokerage or mortgage administrator may retain their
records electronically if they do so in compliance with the Electronic Commerce
Act.
Prescribed periods for retaining records
9 All of the following are the prescribed time periods required by subclause 42(3)(a)(i) of
the Act for retaining records:
(a) for a mortgage transaction, at least 2 years after the expiry of the mortgage
loan or mortgage loan renewal that the records relate to;
(b) for a mortgage application with no corresponding mortgage transaction, at
least 2 years after the date of the application.
Prescribed locations for retaining records
10 The following are prescribed as the locations under subclause 42(3)(a)(iii) of the Act for
retaining records:
(a) the place of business of the mortgage lender, mortgage brokerage or
mortgage administrator in the Province; or
(b) a secure location in Canada, as disclosed to the Registrar in the licensee’s
licence application or annual return required by Section 54 of the Act.
The following regulations are not yet in force
and are not included in the current consolidation: