FSCO's New Forms for Providing Disclosure Information to Investors and Lenders

On July 1, 2015, the Financial Services Commission of Ontario (FSCO) replaced the Investor/Lender Disclosure Statement for Brokered Transactions with the following three new forms:

 

Form 1 must be completed by a licensed mortgage broker on behalf of a mortgage brokerage, and be provided to prospective lenders or investors who are considering an investment in a mortgage. If a construction or development loan is involved, a mortgage broker must complete both Forms 1 and 1.1, and provide them to the potential lender or investor. Form 1.2 is optional and only needs to be completed if the lender or investor is waiving his/her right to the minimum two business day disclosure time, so that it can be reduced to one business day.
 
In order to be consistent with the revised language in Form 1, FSCO replaced the current Renewal Form with the following two new forms on July 1, 2015:
 
Form 2 must be completed by a licensed mortgage broker, and be provided to lenders or investors who are planning to renew an investment in a mortgage. Form 2.1 is optional and only needs to be completed by a mortgage broker, if the investor is waiving his/her right to the minimum two business day disclosure time, so that it can be reduced to one business day.

 

Effective Date of the New Forms

 

Starting on July 1, 2015, principal brokers and mortgage brokers should ensure they use the five new forms.
 
Do not use the previous version of the Investor/Lender Disclosure Statement for Brokered Transactions or the prior version of the Renewal Form on or after July 1, 2015, as they are no longer valid.
 

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