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Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations

made under Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 127/2020 (effective November 1, 2021)

amended to N.S. Reg. 219/2022 (effective November 1, 2022)



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

Standards of conduct

Duty toward authorizing brokerage

Dishonesty, fraud, crime or illegal conduct

Remuneration other than from authorizing mortgage brokerage

Non-monetary incentives

Brokering mortgages in licensee name

Information to be contained in advertisement

Information to be disclosed in correspondence

Duty to provide licence information


 


Citation

1        These regulations may be cited as the Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations.


Definitions

2        In these regulations,

 

“Act” means the Mortgage Regulation Act;

 

“authorizing mortgage brokerage”, in relation to a mortgage broker or associate mortgage broker, means the mortgage brokerage on whose behalf the mortgage broker or associate mortgage broker is authorized to broker mortgages.


Standards of conduct

3        The requirements set out in these regulations are prescribed as standards of conduct for every licensed mortgage broker and licensed associate mortgage broker.


Duty toward authorizing brokerage

4        A mortgage broker or associate mortgage broker must not do or omit to do anything if the action or omission might reasonably be expected to result in the authorizing mortgage brokerage contravening or failing to comply with the Act or its regulations.


Dishonesty, fraud, crime or illegal conduct

5        A mortgage broker or associate mortgage broker must not act, or do or omit to do anything, in circumstances in which the mortgage broker or associate mortgage broker ought to know that by acting, doing the thing or omitting to do the thing the mortgage broker or associate mortgage broker is being used by a borrower, mortgage lender, investor or any other person to facilitate dishonesty, fraud, crime or illegal conduct.


Remuneration other than from authorizing mortgage brokerage

6        (1)    Except as provided in Section 7 for non-monetary incentives, a mortgage broker or associate mortgage broker must not receive, directly or indirectly, any fee or other remuneration for brokering mortgages from a person other than the authorizing mortgage brokerage.

 

          (2)    The prohibition in subsection (1) does not apply to a fee or other remuneration paid to a mortgage broker or associate mortgage broker from the authorizing mortgage brokerage from money received by the authorizing mortgage brokerage from another person for services provided by the mortgage broker or associate mortgage broker.


Non-monetary incentives

7        A mortgage broker or associate mortgage broker may receive, directly or indirectly, an incentive other than money from a mortgage lender or a financial institution for brokering mortgages if all of the following conditions are satisfied:

 

                   (a)      the authorizing mortgage brokerage consents to the provision of the incentive;

 

                   (b)     the authorizing mortgage brokerage and the mortgage lender or financial institution have a written agreement governing the provision of the incentive;

 

                   (c)      the mortgage broker or associate mortgage broker has a written agreement with the mortgage lender or financial institution governing the provision of the incentive;

 

                   (d)     each of the agreements referred to in clauses (b) and (c) requires the mortgage lender or financial institution to give the authorizing mortgage brokerage particulars about all of the following matters both periodically and on request:

 

                              (i)      each incentive provided by the mortgage lender or financial institution to the mortgage broker or associate mortgage broker during the applicable period,

 

                              (ii)     if an incentive entitles the mortgage broker or associate mortgage broker to exercise 1 or more options in the future, particulars of each option exercised during the applicable period.


Brokering mortgages in licensee name

8        A mortgage broker or associate mortgage broker must not broker mortgages in a name other than the name set out on their licence.


Information to be contained in advertisement

9        (1)    All of the following is prescribed as the information required to be contained in an advertisement of a mortgage broker or associate mortgage broker by clause 58(3)(b) of the Act:

 

                   (a)      for an authorizing mortgage brokerage whose name as set out on its licence is, or includes, a franchise name that the authorizing mortgage brokerage is permitted to use under a franchise agreement, a statement clearly indicating that the mortgage brokerage is independently owned and operated;

 

                   (b)     at least 1 reference to the mortgage broker or associate mortgage broker that includes 1 of the following titles:

 

                              (i)      for a mortgage broker, the title “mortgage broker” or “broker” or an abbreviation of either of those titles,

 

                              (ii)     for an associate mortgage broker, the title “associate mortgage broker”, “mortgage broker associate”, “associate broker”, “mortgage associate” or “associate” or an abbreviation of any of those titles.

 

          (2)    In addition to the titles prescribed by clause (1)(b), an advertisement may include an equivalent title in another language.


Information to be disclosed in correspondence

10      (1)    All of the following is prescribed as the information required to be disclosed under subsection 60(1) of the Act by a mortgage broker or associate mortgage broker in all correspondence and other written material prepared or used in the course of the business:

 

                   (a)      the name and licence number of the mortgage broker or associate mortgage broker, as set out on their licence;

 

                   (b)     the name and licence number of the authorizing mortgage brokerage, as set out on its licence;

 

                   (c)      for an authorizing mortgage brokerage whose name as set out on its licence is, or includes, a franchise name that the authorizing mortgage brokerage is permitted to use under a franchise agreement, a statement clearly indicating that the mortgage brokerage is independently owned and operated.

 

          (2)    The names and licence numbers referred to in clauses (1)(a) and (b) must be clearly and prominently displayed wherever they are required to be disclosed.


Duty to provide licence information

11      When requested, a mortgage broker or associate mortgage broker must give a person all of the following information:

 

                   (a)      the name and licence number of the mortgage broker or associate mortgage broker, as set out on their licence;

 

                   (b)     the name and licence number of the authorizing mortgage brokerage, as set out on its licence.



 

 


Legislative History
Reference Tables

Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations

N.S. Reg. 127/2020

Mortgage Regulation Act

Note:  The information in these tables does not form part of the regulations and is compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations made under the Mortgage Regulation Act includes all of the following regulations:

N.S.
Regulation

In force
date*

How in force

Royal Gazette
Part II Issue

127/2020

Nov 1, 2021

date specified (date that Act comes into force on proclamation)

Oct 9, 2020

219/2022

Nov 1, 2022

date specified

Oct 7, 2022

 

 

 

 

 

 

 

 

 

 

 

 

The following regulations are not yet in force and are not included in the current consolidation:

N.S.
Regulation

In force
date*

How in force

Royal Gazette
Part II Issue

 

 

 

 

 

 

 

 

 

 

 

 

*See subsection 3(6) of the Regulations Act for rules about in force dates of regulations.

Amendments by Provision

ad. = added
am. = amended

fc. = fee change
ra. = reassigned

rep. = repealed
rs. = repealed and substituted

Provision affected

How affected

9(1)(b)(ii)..........................................

rs. 219/2022

 

 

 

 

 

 

 

 

Note that changes to headings are not included in the above table.

Editorial Notes and Corrections

 

Note

Effective
date

 

 

 

 

 

 

 

 

 

Repealed and Superseded

N.S.
Regulation

Title

In force
date

Repealed
date

 

 

 

 

Note:  Only regulations that are specifically repealed and replaced appear in this table.  It may not reflect the entire history of regulations on this subject matter.