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General Disclosure Regulations

made under Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 124/2020 (effective November 1, 2021)

amended to N.S. Reg. 215/2022 (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

General Disclosure Requirements

Written disclosure

Disclosure based on estimate or assumption

Clarity of disclosure, acknowledgment, consent

Disclosures by Mortgage Brokerages to Borrowers

Application of Sections 7 to 10

Prescribed contents, timing and manner of disclosure

Criteria for determining most suitable mortgage loan

Recommendation and assessment

Ensuring initial cost of borrowing disclosure

Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors

Application of Sections 12 to 14

Disclosure to private investor about mortgage

Disclosure to private investor with respect to mortgage renewal

Deadlines for Disclosures to Investors

Deadline for disclosure by mortgage lender or mortgage brokerage

Deadline for disclosure by mortgage administrator


 


Citation

1        These regulations may be cited as the General Disclosure Regulations.


Definitions

2        In these regulations,

 

“Act” means the Mortgage Regulation Act;

 

“disclosure” means a disclosure of information required to be provided or disclosed under the Act or its regulations;

 

“Form 1—Mortgage Brokerage Disclosure” means Form 1—Mortgage Brokerage Disclosure as prescribed in the Forms Regulations made under the Act;

 

“Form 2—Mortgage Brokerage Recommendation and Assessment” means Form 2—Mortgage Brokerage Recommendation and Assessment as prescribed in the Forms Regulations made under the Act;

 

“Form 4—Investor Disclosure Statement” means Form 4—Investor Disclosure Statement as prescribed in the Forms Regulations made under the Act;

 

“Form 5—Investor Renewal Disclosure” means Form 5—Investor Renewal Disclosure as prescribed in the Forms Regulations made under the Act.


General Disclosure Requirements


Written disclosure

3        (1)    Every disclosure must be in writing.

 

          (2)    If a borrower consents in writing, in paper or electronic form, to receiving disclosures in electronic form, the disclosures referred to in Sections 7 and 9 may be provided to and returned by the borrower in an electronic form that the borrower can retrieve and retain.

 

          (3)    If a private investor consents in writing, in paper or electronic form, the disclosures required by Sections 12 and 13 may be provided to and returned by the private investor in an electronic form that the private investor can retrieve and retain.


Disclosure based on estimate or assumption

4        (1)    A disclosure may be an estimate or may be based on an assumption if, when the disclosure is made,

 

                   (a)      the actual information to be disclosed cannot be known; and

 

                   (b)     the estimate or assumption is reasonable.

 

          (2)    If a disclosure is an estimate or is based on an assumption, the disclosure must include a statement to that effect.


Clarity of disclosure, acknowledgment, consent

5        Every disclosure, consent or acknowledgment required by the Act or its regulations must be

 

                   (a)      expressed in plain language that is clear and concise; and

 

                   (b)     presented in a manner that is logical and is likely to bring to the attention of the borrower, lender or investor the information that is required to be conveyed.


Disclosures by Mortgage Brokerages to Borrowers


Application of Sections 7 to 10

6        Sections 7 to 10 apply to every mortgage brokerage that is required by Section 31 of the Act to act in the best interests of a borrower.


Prescribed contents, timing and manner of disclosure

7        (1)    For the purposes of clause 32(1)(a) of the Act,

 

                   (a)      the information contained in Form 1—Mortgage Brokerage Disclosure is prescribed as the information that a mortgage brokerage is required to provide to a borrower; and

 

                   (b)     a completed Form 1—Mortgage Brokerage Disclosure must be provided to a borrower before the mortgage brokerage provides any services to the borrower.

 

          (2)    Before providing any services to a borrower, a mortgage brokerage must receive and retain a copy of the Form 1—Mortgage Brokerage Disclosure that is signed and dated by the borrower.


Criteria for determining most suitable mortgage loan

8        The assessment criteria set out under the heading “Assessment Criteria” in Form 2—Mortgage Brokerage Recommendation and Assessment are prescribed as the criteria that a mortgage brokerage is required by clause 32(1)(b) of the Act to use in determining a suitable mortgage loan for a borrower.


Recommendation and assessment

9        The information set out in Form 2—Mortgage Brokerage Recommendation and Assessment is prescribed as the information that is required by clause 32(1)(c) of the Act to be contained in a written assessment of the determination of a suitable mortgage that must be provided by a mortgage brokerage to a borrower.


Ensuring initial cost of borrowing disclosure

10      A mortgage brokerage must ensure that an initial disclosure statement of the cost of borrowing to be provided to a borrower by a mortgage lender in accordance with the Cost of Borrowing Regulations made under the Act has been provided to a borrower by or on behalf of the borrower’s mortgage lender within the time period prescribed in those regulations.


Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors


Application of Sections 12 to 14

11      Sections 12 to 14 apply to every mortgage lender dealing with a private investor and every mortgage brokerage that is required by Section 33 of the Act to act in the best interests of a private investor.


Disclosure to private investor about mortgage

12      (1)    A mortgage lender or mortgage brokerage must provide each private investor with all of the following information and documents for any investment in a mortgage that the mortgage lender or mortgage brokerage presents for the consideration of the private investor:

 

                   (a)      a completed Form 4—Investor Disclosure Statement signed by 1 of the following:

 

                              (i)      an authorized representative of the mortgage lender,

 

                              (ii)     a mortgage broker authorized by the mortgage brokerage;

 

                   (b)     for an investment in an existing mortgage, a copy of the mortgage;

 

                   (c)      a copy of any appraisal of the property completed in the previous 12 months and available to the mortgage lender or mortgage brokerage;

 

                   (d)     if an appraisal of the property as described in clause (c) is not available, documentary evidence of the value of the property other than an agreement of purchase and sale;

 

                   (e)      a copy of any agreement of purchase and sale for the property entered into in the previous 12 months and available to the mortgage lender or mortgage brokerage, together with copies of all related schedules, amendments and waivers;

 

                   (f)      documentary evidence of the borrower’s ability to meet the mortgage payments;

 

                   (g)     a copy of the borrower’s application for the mortgage and of any document submitted in support of the application;

 

                   (h)     for a new mortgage, documentary evidence of any down payment made by the borrower for the purchase of the property;

 

                   (i)      a copy of any agreement that the private investor may be asked to enter into with the mortgage lender or mortgage brokerage;

 

                   (j)      for an investment in an existing mortgage, a certificate of insurance or other documentary evidence confirming the insurance coverage for the property;

 

                   (k)     all additional information that an investor of ordinary prudence would consider to be material to a decision about whether to lend money on the security of the property or to invest in the mortgage.

 

          (2)    A mortgage lender or mortgage brokerage must obtain the private investor’s written acknowledgment that the mortgage lender or mortgage brokerage has disclosed the information and documents required by this Section.


Disclosure to private investor with respect to mortgage renewal

13      (1)    A mortgage lender or mortgage brokerage must provide each private investor with all of the following information and documents for any renewal of a mortgage that the mortgage lender or mortgage brokerage presents for the consideration of the private investor:

 

                   (a)      a completed Form 5—Investor Renewal Disclosure, signed by 1 of the following:

 

                              (i)      an authorized representative of the mortgage lender, or

 

                              (ii)     a mortgage broker authorized by the mortgage brokerage;

 

                   (b)     a copy of any appraisal of the property completed in the previous 12 months and available to the mortgage lender or mortgage brokerage;

 

                   (c)      a copy of any agreement of purchase and sale for the property entered into in the previous 12 months and available to the mortgage lender or mortgage brokerage, together with copies of all related schedules, amendments and waivers;

 

                   (d)     a certificate of insurance or other documentary evidence confirming the insurance coverage on the property;

 

                   (e)      all additional information that an investor of ordinary prudence would consider to be material to a decision about whether to renew the mortgage.

 

          (2)    A mortgage lender or mortgage brokerage must obtain the private investor’s written acknowledgment that the mortgage lender or mortgage brokerage has disclosed the information and documents required by this Section.


Deadlines for Disclosures to Investors


Deadline for disclosure by mortgage lender or mortgage brokerage

14      (1)    Except as provided in subsection (2), a disclosure of information required by the Act or its regulations to be made by a mortgage lender or a mortgage brokerage to an investor must be made at least 2 business days before the earliest of the following events:

 

                   (a)      the mortgage lender or mortgage brokerage receives money from the investor;

 

                   (b)     the mortgage lender or mortgage brokerage enters into an agreement to receive money from the investor;

 

                   (c)      the mortgage lender enters into an agreement to enter into the mortgage or the investor enters into an agreement to purchase, exchange or sell the mortgage;

 

                   (d)     the money is advanced to the borrower under the mortgage;

 

                   (e)      the investment completion date.

 

          (2)    If an investor consents in writing, in paper or electronic form, to receiving a disclosure after the deadline set out in subsection (1), the disclosure may instead be made

 

                   (a)      no later than 1 business day before the earliest of the events set out in subsection (1); or

 

                   (b)     if the investor has received legal advice, at any time before the earliest of the events set out in subsection (1).


Deadline for disclosure by mortgage administrator

15      (1)    Except as provided in subsection (2), a disclosure of information required by the Act or its regulations to be made by a mortgage administrator to an investor must be made at least 2 business days before the mortgage administrator and the investor enter into a mortgage administration agreement for the mortgage.

 

          (2)    If an investor consents in writing, in paper or electronic form, to receiving a disclosure about a mortgage after the deadline set out in subsection (1), the disclosure may instead be made

 

                   (a)      no later than 1 business day before the mortgage administrator and the investor enter into a mortgage administration agreement for the mortgage; or

 

                   (b)     if the investor has received legal advice, at any time before the mortgage administrator and the investor enter into a mortgage administration agreement for the mortgage.



 

 


Legislative History
Reference Tables

General Disclosure Regulations

N.S. Reg. 124/2020

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 General Disclosure 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

124/2020

Nov 1, 2021

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

Oct 9, 2020

215/2022

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

14(2)(b).............................................

am. 215/2022

15(2)(b).............................................

am. 215/2022

 

 

 

 

 

 

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.