Questions About All Five New Forms
- Why does FSCO have five new forms for providing disclosure information to investors and lenders who are interested in development and/or construction loans, including syndicated mortgages?
- I currently use the Investor/Lender Disclosure Statement for Brokered Transactions. Which of the three new forms (Forms 1, 1.1 and 1.2) should I use on July 1, 2015?
- I currently use the Renewal Form. Which of the two new forms (Forms 2 and 2.1) should I use on July 1, 2015?
- When do I need to start using the five new forms?
- Do third party service providers have access to the five new forms?
- Is my investment in a mortgage guaranteed by any government agency?
- Are the new forms available on FSCO's website?
Questions about Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions
- Why did FSCO update the Investor/Lender Disclosure Statement for Brokered Transactions?
- Who needs to use Form 1- Investor/Lender Disclosure Statement for Brokered Transactions?
- Why is the updated Investor/Lender Disclosure Statement for Brokered Transactions (Form 1) longer than the current version of the form?
- Who did FSCO consult when it decided to update the Investor/Lender Disclosure Statement for Brokered Transactions?
- What should I do if I don’t understand some of the terms/words in the completed Investor/Lender Disclosure Statement for Brokered Transactions?
- Are certain investors/lenders not required to receive a completed Form 1- Investor/Lender Disclosure Statement for Brokered Transactions?
Questions about Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans
- Who needs to use Form 1.1 - Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans?
- Is Form 1.1 - Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans replacing a previous form?
- Does Form 1.1 - Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans need to be completed in conjunction with any other form?
Questions about Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period
- Who needs to use Form 1.2 - Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period?
- Does Form 1.2 - Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period need to be completed in addition to any other forms?
- My mortgage broker is asking me to reduce the two business days that I have to review the Investor/Lender Disclosure Statement for Brokered Transactions to one business day. Do I need to agree to this provision?
- What is the definition for a "business day"?
Questions about Form 2 – Renewal Form
- Why did FSCO update the Renewal Form?
- Who needs to use Form 2 - Renewal Form?
- When do I need to start using Form 2 - Renewal Form?
- Are certain investors/lenders not required to receive a completed Form 2- Renewal Form?
Questions about Form 2.1 – Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period
- Is Form 2.1 - Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period a new form?
- Who needs to use Form 2.1 - Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period?
- Does Form 2.1 - Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period need to be completed in addition to any other forms?
- My mortgage broker is asking me to reduce the two business days that I have to review Form 2 to one business day. Do I need to agree to this provision?
- What is the definition for a "business day"?
Questions About All Five New Forms
Why does FSCO have five new forms for providing disclosure information to investors and lenders who are interested in development and/or construction loans, including syndicated mortgages?
FSCO has seen a number of changes and expansions in the market for private and syndicated mortgages, and has determined it is important to provide additional disclosure information to potential lenders and investors. FSCO also wanted to make the forms more user-friendly and incorporate feedback that it has received from members of the mortgage broking industry.
I currently use the Investor/Lender Disclosure Statement for Brokered Transactions. Which of the three new forms (Forms 1, 1.1 and 1.2) should I use on July 1, 2015?
Form 1 must be completed by a licensed mortgage broker, 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/investor. Form 1.2 is optional and only needs to be completed by a mortgage broker on behalf of a mortgage brokerage, 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.
I currently use the Renewal Form. Which of the two new forms (Forms 2 and 2.1) should I use 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.
When do I need to start using the five new forms?
FSCO is also planning to replace the current Renewal Form with the following two new forms on July 1, 2015:
Do third party service providers have access to the five new forms?
Yes, FSCO has contacted several third party service providers and will make Forms 1, 1.1, 1.2, 2 and 2.1 available to them in advance of their effective date.
Is my investment in a mortgage guaranteed by any government agency?
No, investments in mortgages are not insured by any government agency or other investor protection fund. Potential investors/lenders should always seek independent legal advice.
Are the new forms available on FSCO's website?
Yes, all of the new forms are available on FSCO’s website as fillable PDF documents. They have also been provided to third party companies that supply the mortgage broking industry.
Questions about Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions
Why did FSCO update the Investor/Lender Disclosure Statement for Brokered Transactions?
Who needs to use Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions?
Why is the updated Investor/Lender Disclosure Statement for Brokered Transactions (Form 1) longer than the current version of the form?
FSCO's goal is to ensure that potential investors or lenders have the information they need to make informed decisions, before they commit any funds to an investment. For construction and/or development loans, including syndicated mortgages, a mortgage broker must complete both Forms 1 and 1.1, and provide them to the potential lender/investor.
Who did FSCO consult when it decided to update the Investor/Lender Disclosure Statement for Brokered Transactions?
What should I do if I don’t understand some of the terms/words in the completed Investor/Lender Disclosure Statement for Brokered Transactions?
If you don’t understand some of the terms/words in the completed form, you may contact your mortgage brokerage, and/or seek independent legal advice to better understand the investment you are considering.
Are certain investors/lenders not required to receive a completed Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions?
Questions about Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans
Who needs to use Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans?
Is Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans replacing a previous form?
Does Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans need to be completed in addition to any other form?
Questions about Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period
Who needs to use Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period?
Does Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting period need to be completed in addition to any other forms?
My mortgage broker is asking me to reduce the minimum two business days that I have to review the Investor/Lender Disclosure Statement for Brokered Transactions to one business day. Do I need to agree to this provision?
What is the definition for a "business day"?
According to Ontario Regulation 188/08
under the Mortgage Brokerages, Lenders and Administrators Act, 2006, a “business day” is defined as a day that is not a Saturday or a holiday. (Note that Sundays are defined as holidays.) That means business days are Monday to Friday, with the exception of any statutory holidays.
Questions about Form 2 – Renewal Form
Why did FSCO update the Renewal Form?
The Renewal Form was updated in order to:
Who needs to use Form 2 – Renewal Form?
Form 2 – Renewal Form 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.
When do I need to start using Form 2 – Renewal Form?
Are certain investors/lenders not required to receive a completed Form 2 – Renewal Form?
If the mortgage is renewing with the same lender, the existing lender must receive the completed
Form 2 – Renewal Form (Ontario Regulation 188/08, section 32 (1)).
Questions about Form 2.1 – Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period
Is Form 2.1 – Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period a new form?
Who needs to use Form 2.1 – Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period?
Does Form 2.1 – Investor/Lender Disclosure Statement for Brokered Mortgages on Renewal: Waiver for Reducing the Waiting Period need to be completed in addition to any other forms?
My mortgage broker is asking me to reduce the two business days that I have to review Form 2 to one business day. Do I need to agree to this provision?
What is the definition for a "business day"?
According to Ontario Regulation 188/08
under the Mortgage Brokerages, Lenders and Administrators Act, 2006, a “business day” is defined as a day that is not a Saturday or a holiday. (Note that Sundays are defined as holidays.) That means business days are Monday to Friday, with the exception of any statutory holidays.