Files and funds received by Wednesdays at 9pm will be scheduled
to be paid out the following Wednesday.
Click on Disclosure to Borrower entry screen in Filogix
Cost of Borrowing 1st page
If there is no grace period with respect to when interest begins then please leave this box blank
“Where the actual interest rate may change… “- this is in respect to Variable mortgages and you would put in the details of the product. See below for appropriate descriptions
Terms and Conditions: These are all defaulted to” Refer to the commitment for complete details”. Please add anything that is unusual on the approval. For example: tax hold backs, cash backs for down payment, holdback of funds, bridge financing information, insured conventional mortgage, etc.
Nature, Amount and Timing of Optional Services: This includes life insurance, ELV, Home Warranty Plans, etc.
Conflict of Interest 2nd page
Conflicts of Interest -describe any conflicting relationship if it applies to your deal. For example, you’re related to the lender
Mortgage Commission – tick the box
Bonus (really means Volume Bonus) – tick the box
Other Compensation (means points, mcap bucks, etc) – tick the box
Referral – No referral Fee paidorReferral – Referral Fee paid tick the boxes if either applies to your deal. If they don’t apply then leave them blank. If you have ticked that a referral fee will be paid then you must include the name of the person or company that is receiving the referral fee
The Broker is representing Both the Lender and the Borrower … (changed from Lender)
The brokerage has placed over 50%… leave this blank as it does not apply unless the client requests the information
The brokerage has acted for 35 lenders during the previous fiscal year
RMA has not acted as a lender in the previous fiscal year
After all the information is entered then it will download onto the Disclosure Form. Please PRINT COMBINATION as this melds the 2 forms into one document.
Please have client sign and date the waiver as well as the acknowledgement on the disclosure
Variable Rate Mortgages
Here are 2 examples of the descriptions that need to be included in on the disclosure where the mortgage is a Variable Rate Mortgage
Scenario 1 – TD, Meridian Credit Union, Your Neighbourhood Credit Union do not automatically adjust the mortgage payment as the Prime rate changes. The description should read something like this:
VRM, Prime -.60, compounding monthly, lender will not change the mortgage payment as Prime changes, therefore, negative amortization may occur.
You will need to adjust the percentage rate and compounding to match the commitment
Scenario 2 – for all other A lenders:
VRM, Prime -.60, compounding semi annually, lender will change the mortgage payment as Prime changes.
You will need to adjust the percentage rate and compounding to match the commitment
Step, Matrix, AIO, LOC, HELOC, and the like
Complete the file as if it was a fixed mortgage using the total mortgage amount. The only difference is that in the disclosure you will enter the line of credit portion (as if you were doing a vrm)
The description for the vrm portion on the disclosure will read something like this:
STEP mortgage for 150K – 50K in a secured line, calculated monthly based on the prime rate, not amortized, interest only payments
100K in a VRM, Prime -.70% lender will change mortgage payments as Prime Rate changes
Matrix mortgage, 25K in a LOC, calculated monthly based on the prime rate, not amortized, interest only payments
AIO Mortgage, 10k in a LOC, calculated monthly based on the prime rate, not amortized, interest only payments
LOC and/or HELOC, 75K in a LOC and/or HELOC, calculated monthly based on the prime rate, not amortized, interest only payments
Equity Line Visas & Bundle Mortgages
Home Trust ELV’s – the line of credit portion and terms should be written in the terms and conditions section of the disclosure.
For example: 7k in an equity line visa at 8.99%. Payments based on 1% of the monthly balance or $10.00, whichever is greater.
Bundle Mortgage – Home Trust has recently re introduced the Bundle Mortgage. Since they are issuing 2 separate approvals (one for the 1st and one for the 2nd) I will require 2 separate complete files
General Rules for the disclosure form
Anyone looking at a disclosure should be able to understand what type of mortgage and what the different terms are if the disclosure is completed properly. Common sense should prevail in some situations regarding mortgages that are not quite straight forward. The following are guidelines only and may not cover the scope of all that’s required on a disclosure.
If CMHC and sales tax charged, then remember to add the amounts to the fees section of the disclosure
CMHC and sales tax are NOT to be included in APR (unless it’s an insured conventional mortgage)
If the lender/client is paying the cmhc and tax or if it’s an insured conventional mortgage then please make a note of this in the terms and conditions section of the disclosure
FEES SECTION – what to include
Lender fees are to be entered in the fee section of the disclosure and included in APR
Estimated legal fees and disbursements are to be listed in the fees section of the disclosure and NOT included in APR
Any cost associated with the mortgage needs to be listed in the fees section and included in APR. For example: valuation fees, appraisals, home inspections, lender fees, broker fees, title searches, etc.
TERMS AND CONDITIONS SECTION – what to include
Tax holdbacks are to be listed in the Terms and Conditions section of the disclosure
Information on bridge financing are to be listed in the Terms and Conditions section of the disclosure
Cash back amounts are to be listed in the Terms and Conditions section of the disclosure
Any funds held back at closing by the lender must be recorded in the Terms and Conditions section of the disclosure
Any penalties for breaking a mortgage can be listed in the Terms and Conditions section of the disclosure, never in the fees section
CMHC and tax charged by the lender AND paid by the lender or client
Make a note of any insured conventional deals
ELV’s must have an appropriate description. i.e. ELV, interest only monthly payments based on 1.5% of outstanding monthly balance, no amortization
Lines of Credit must have an appropriate description. i.e. LOC, interest only monthly payments, no amortization
Other things you need to know
All Private Investor Disclosures (FORM 1) must be received at head office for Broker of Record’s signature before going to the Investor 2 days prior to the Investor committing to fund such mortgage. Please also include the Lender Risk Tolerance form and photo ID of the investor when sending the Form 1 to head office for signing
Failure to do this will result in no commissions payable Commissions/Broker Fees to you as an agent or broker, no exceptions will be made.
Make sure the clients initial at the top of the form to waive or accept life and/or disability. Please also make sure they sign and date at the bottom of the form. Make sure to fax all accepted insurance forms and a void cheque to the insurer (MPP)
Client Suitability Form
Must be signed and dated by all clients on the application. If the mortgage is Variable or a product based on the Prime Rate then please also have the client circle their risk tolerance
Mortgage brokerages must take steps to verify the identity of the borrower and lender that you do business with. Acceptable photo ID is the following:
Please note: In addition to the picture, the ID must show the client’s signature. This may mean that in some cases you will need to take multiple photocopies of the ID. FSCO indicates that a Health card (OHIP card) is NOT acceptable. At the time of your client meeting have a digital camera, or your phone available. Take pictures of the client’s ID and signatures for the greatest clarity. Please make sure to write the clients name and ID# beside the photocopies before sending the file in
You must always have a signed consent form from the client BEFORE running a bureau. This is an Equifax rule and Equifax may suspend your privileges permanently if you do not comply.
All files must be submitted to head office by 9pm on Wednesday nights for payment the following Wednesday (assuming the funds are in as well)
RMA has instituted a “File Submission for Payment” process that is designed to be user friendly for the consultant and the back‐office. Please email your complete file in PDF format, to email@example.com. If you are emailing, we ask you to name the file in this manner… Main applicant’s LastName, FirstName eg: Smith,John
Here’s how the commission process works:
Agent prepares the files for submission. The agent places documentation in a particular sequence to facilitate the auditing process. (Please note: it is EXTREMELY IMPORTANT that the documentation is placed in the required order that is listed on the Mortgage Checklist.)
Agent emails the file to firstname.lastname@example.org OR faxes the file in to 1‐888‐482‐3536
A faxed file will be automatically converted into a PDF format . We are unable to edit files when there are missing documents or missing information and the agent will be required to resend the complete file with the corrected information.
All files must be received by Wednesday at 9pm to be audited for the upcoming commission. Once the audit is complete, the file is scheduled for payment and matched up with commissions received from the lender.
The agent will receive a “file complete” email for any file that is in order and complies with FSCO.
The agent will receive an email outlining the deficiencies of any file that doesn’t comply with FSCO and will be required to resend another complete file with the corrected information. If the commission and/or broker fee is in AND the file is complete, the “pay file” process is activated. The agent receives an email with commission details before Wednesday. RMA processes commissions weekly. Commissions are deposited into your account each Wednesday.
Additions to your commissions Mortgage life insurance and other trailer fees: RMA credits your commissions for any mortgage life insurance and trailer fees that you have earned as they are received. Volume Bonus: RMA credits your commissions for any volume bonus that you have earned as they are received.
Deductions from your commissions:
Credit Bureaus: RMA deducts the cost of credit bureaus that you use on a monthly basis usually in the 3rd week of the month. The deductions are usually 30 days behind. For example: On October 1st you will be deducted for the credit bureaus that you pulled in August. You will receive a spreadsheet with the names of the clients for, whom you pulled bureaus for, along with the cost of each bureau. Desk fee: RMA deducts the desk fees at the beginning of each month. (First Wednesday of the month)