Policies and Procedures

Code of Ethics

RMA’s Code of Ethics was established to define acceptable behavior of its Agents. By doing so, it promotes a high standards of industry practice and establishing a framework for professional behaviour and responsibilities. All RMA’s members must abide by the Code of Ethics.

1.1 Code of Ethics

1.1.1 Introduction

The Code of Ethics described below is not meant to be all -inclusive, but rather to serve as a guide for the Mortgage Brokers/Agents of Real Mortgage Associates Inc.

A Code of Ethics is defined as a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards. This Code reflects the level of professionalism that Real Mortgage Associates Inc. demands of all its Mortgage Brokers/Agents.

By adopting this Code and putting it into daily practice, you build the strongest of foundations for long-term success within this industry.

1.1.2 Behaviours and Attitudes

At Real Mortgage Associates Inc., we believe that Mortgage Agents and Mortgage Brokers are professionals assisting our clients in getting the right borrowing products and educating them on how to manage their cash-flow while paying down debt on a schedule that meets their lifestyle.

In order to be successful on this path, there are professional behaviours and ethical attitudes that consumers, the regulator, and the industry expect of Mortgage Brokers/Agents:

Honesty Respectful of Privacy Trustworthy

Integrity Empathetic Reliable

Professionalism Co-Operative Straightforward

Knowledge Collaborative Non-Discriminatory

Competency Accurate Compliant

Law-Abiding Confident Efficient

This is by no means a complete list of attitudes and behaviours, but should reflect the attitudes and behaviours of the Mortgage Brokers/Agents of Real Mortgage Associates Inc.

1.1.3 Ethical Standards

Mortgage Brokers/Agents of Real Mortgage Associates Inc. shall conduct their activities with honesty, integrity and professionalism, ensuring that they are knowledgeable in the areas of the mortgage industry in which they participate. Furthermore, Mortgage Brokers/Agents of Real Mortgage Associates Inc. shall at all times act in compliance with this Code of Ethics, viewing this Code as a minimum standard of professional behaviour, in addition to developing and executing sound business practices.

1.1.4 Fees and Charges

A Mortgage Broker/Agent of Real Mortgage Associates Inc. must not ever take advantage of the Borrower’s situation by charging fees that are more than is reasonable given the circumstances of the transaction, or attempt to complete a mortgage transaction where the cost of borrowing grossly exceeds the cost of borrowing currently available to like Borrowers for a similar transaction.

1.1.5 Duty to Protect

Mortgage Brokers/Agents of Real Mortgage Associates Inc. shall use their best efforts to protect all parties to a mortgage transaction and the public against fraud, misrepresentation, unethical practices or other violations of this Code of Ethics or the Mortgage Brokerages, Lenders and Administrators Act, 2006 and its Regulations

(hereafter referred to as the MBLAA, 2006).

1.1.6 Fraud Identification

Mortgage Fraud is defined by Criminal Intelligence Service Canada (CISC) as the deliberate use of mis-statements, misrepresentations or omissions to fund, purchase or secure a loan. Simply put, Mortgage Fraud is any scheme designed to obtain mortgage financing under false pretenses, such as using fraudulent or stolen identification or falsifying income statements. The life cycle of a mortgage transaction begins when you make initial contact with the Client, and ends when the mortgage you have placed ceases to exist with the Lender you placed the mortgage with.

There is no statute of limitations regarding fraud, in the sense that fraudulent activity can be detected and prosecuted long after the transaction has been completed. There are three main types of Mortgage Fraud in Canada – Fraud for Criminal Activity, Fraud for Profit, and Fraud for Shelter.

Fraud for Criminal Activity occurs when the intent is to secure a property for the purpose of conducting criminal activity on the premises. Marijuana grow-ops and motorcycle gang clubhouses are just two examples of this type of fraud.

Fraud for Profit occurs when the intent is to directly profit financially from the performance of the fraudulent action. Title fraud, straw buyers, and identity theft are the usual occurrences of this type of fraud.

The third (and by far most common) type of fraud is Fraud for Shelter. This occurs when a Client misrepresents or attempts to misrepresent some material fact regarding their financial situation in order to gain a mortgage for the purposes of their own residential needs. Misstating income, providing phony income or employment documentation, or hiding debt are the three most common occurrences in this case. What is most important for you to remember is that fraud is fraud, regardless of the reason. While there may be extenuating circumstances around the situation, be aware that if a Client is dishonest with you during the mortgage process, you have to consider this when determining whether to continue to deal with them. In any case, whenever you suspect fraud in a mortgage transaction, notify the Principal Broker of Real Mortgage Associates Inc. immediately to discuss the situation, and determine how to proceed.

1.1.6.1 Duty re unlawful transactions

A brokerage shall not act as a representative of a borrower, lender or investor in respect of a mortgage if the brokerage has reason to doubt that the mortgage, its renewal or the investment in it is lawful. O. Reg. 153/15, s. 1.

1.1.6.2 Duty re borrower’s legal authority

A brokerage shall take reasonable steps to verify a borrower’s legal authority to mortgage a property, and if the brokerage has reason to doubt the borrower’s legal authority, the brokerage shall so advise each prospective lender at the earliest opportunity. O. Reg. 153/15, s. 1.

1.1.6.3 Duty re accuracy of mortgage application

If a brokerage has reason to doubt the accuracy of information contained in a borrower’s mortgage application or in a document submitted in support of an application, the brokerage shall so advise each prospective lender at the earliest opportunity. O. Reg. 188/08, s. 14.

1.1.6.3.1 Continuation of duty

The duty to advise a lender under sections 13 and 14 continues with respect to the lender after the borrower enters into the mortgage agreement or signs the mortgage instrument or a mortgage renewal agreement, as the case may be, with the lender. O. Reg. 153/15, s. 2.

1.1.6.3.2 Dishonesty, fraud, etc.

A brokerage shall not act, or do anything or omit to do anything, in circumstances where the brokerage ought to know that by acting, doing the thing or omitting to do the thing, the brokerage is being used by a borrower, lender, investor or any other person to facilitate dishonesty, fraud, crime or illegal conduct. O. Reg. 153/15, s. 2.

1.1.7 Borrower Conduct (O. Reg. 188/08 s.12, 13, 14.1)

A Mortgage Broker/Agent of Real Mortgage Associates Inc. should immediately terminate their relationship with a Borrower & advise the prospective lender if:

• The Borrower instructs them to do anything that would contradict their duty as outlined in section 1.1.5 above,

• The Borrower instructs the Mortgage Broker/Agent to do anything that contravenes the MBLAA, 2006 or this Code, or

• If the Mortgage Broker/Agent becomes aware that the Borrower has knowingly provided false information during the course of the transaction designed to mislead the Mortgage Broker/Agent, Lender, or other party to the transaction.

If the Broker / Agent has reason to doubt the Borrower’s legal authority to the mortgage property.

1.1.8 Disclosure

Mortgage Brokers/Agents of Real Mortgage Associates Inc. shall disclose to all

appropriate parties of a mortgage transaction, in the prescribed form and within the

period as required under the MBLAA, 2006 (O. Reg. 191/08 s.7), all fees payable by the

Borrower (O. Reg. 188/08 s.30 (9)), all referral fees (O. Reg. 188/08 s.22), or fees of a similar kind by whatsoever name receivable by the Mortgage Broker/Agent (O. Reg. 188/08 s.21).

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall not provide services

to a Borrower where the Mortgage Broker/Agent has or may acquire a direct or indirect

financial interest in the mortgage transaction, unless the Mortgage Broker/Agent

discloses such interest, clearly and truthfully, to the Borrower (O. Reg. 188/08 s.27).

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall disclose to the

Borrower, in a clear and truthful manner, all real or perceived conflicts of interest prior to the processing of any mortgage transaction.

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall disclose to the

Borrower any referral fees paid by the Mortgage Broker/Agent to any third-party (O. Reg.

188/08 s.22).

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall disclose any other information not specifically identified here as required by the MBLAA, 2006, in a timely manner as prescribed by the MBLAA, 2006.

1.1.9 Confidentiality

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall hold in strict

confidence any information arising from the professional relationship concerning the

business and affairs of their Client, and shall not divulge that information unless the

Mortgage Broker/Agent is expressly authorized by the Client or required by law to do so.

The Mortgage Broker/Agent of Real Mortgage Associates Inc. will take all reasonable and necessary steps to protect the confidentiality of the Borrower’s personal

information. This includes (but is not necessarily limited to) secure handling of all

hardcopy client files through the storage of such files in locking storage cabinets or an area with lockable, restricted access. The Mortgage Broker/Agent will also ensure the establishment of password-protected access to any laptop or desktop computer

containing personal client data.

A Mortgage Broker/Agent of Real Mortgage Associates Inc., acting for more than one party to a transaction, shall not act to the detriment of any one of the parties by

withholding material information from the other party or parties.

1.1.10 Competence

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall endeavour to stay

informed regarding the MBLAA, 2006, regulations, proposed legislation, other relevant laws, and other essential facts relevant to public policies related to the services they provide.

When a Mortgage Broker/Agent of Real Mortgage Associates Inc. is unable to render service in accordance with the standards required in this Code of Ethics, the Mortgage Broker/Agent shall decline to provide said service.

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall provide timely service and respond on a timely basis to inquiries from any or all participants in a mortgage transaction.

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall act with their best efforts to ensure that the disclosure of information to the Borrower and the preparation of documentation is true, plain, and not misleading (O. Reg. 191/08 s.6 (4)).

1.1.11 Member Competition

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall not criticize a

competitor Mortgage Broker/Agent or Brokerage unfairly, nor refer to another Mortgage Broker/Agent or Brokerage in a disparaging manner. The Mortgage Broker/Agent shall act fairly and respectfully with any other Mortgage Broker/Agent or Brokerage with whom they encounter in the course of their duties.

1.1.12 Co-operation with Provincial Regulatory Bodies

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall co-operate with any investigation by the Financial Services Commission of Ontario (FSRA) (2006, c. 29, s.30 & 30

(6)), the Canadian Mortgage Brokers Association of Ontario (CMBA), any other

applicable regulatory body, or similar agency responsible for governance of the

mortgage brokerage industry or individuals dealing with mortgages. Co-operation may include providing access to copies of all documents (2006, c29, s. 31 (5)) and answering all questions relevant to the investigation, unless prevented from doing so by law, or under instructions by legal counsel.

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall testify, when

requested to do so by an authorized representative of an applicable legal entity, at any hearing involving another Mortgage Broker/Agent or Brokerage.

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall not obstruct an

investigation, including withholding or concealing documents, information, or

attempting to influence the information or evidence that a potential witness might

provide at any investigation of a Mortgage Broker/Agent or Brokerage. The Mortgage

Broker/Agent shall not submit false or misleading information to an investigator or any authorized committee involved in such an investigation.

In the event any investigation is ever launched against you while your licence is/was held by this brokerage, you must notify the Principal Broker immediately.

Broker/Agent shall not submit false or misleading information to an investigator or any authorized committee involved in such an investigation.

In the event any investigation is ever launched against you while your licence is/was held by this brokerage, you must notify the Principal Broker immediately.

1.1.13 Advertising & Websites

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall apply, set, and

maintain standards of honesty, truth, accuracy, fairness and propriety in advertising and

shall comply with the Canadian Code of Advertising Standards, as well as the policies

and procedures of this brokerage, which deal with advertising and marketing, to ensure

compliance with the MBLAA, 2006 (O. Reg. 188/08 s.5, 6, 7, 8). All agents and brokers new to the organization must have their advertising approved by the Principal Broker or their designate before publication or other use. The principal broker may allow tenured brokers who have demonstrated their knowledge of compliance in advertising to publish advertising without prior approval from the Principal Broker.

Brokers and agents are permitted to maintain personal websites. The URL for the website may belong to the broker or agent and the content on the site shall refer to Real Mortgage Associates Inc. The homepage must refer to Real Mortgage Associates Inc. and show the license number, and logo of the company. Other pages referencing the agent or broker must indicate that the agent or broker is a representative of Real Mortgage Associates Inc., indicating the licensing designation. Within the ‘Contact Us’ or ‘About US’ section of the website, the head office address must be listed and identified as “Head Office” or “Corporate Office”. We have established “approved suppliers” that provide content rich websites, for your convenience.

1.1.14 Discrimination

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall not, when acting in a professional capacity, discriminate or participate in discrimination against any person on the basis of race, creed, gender, or sexual orientation, and shall adhere to the Ontario Human Rights Code, as it applies to their business.

1.1.15 Laws and Regulations

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall conduct their

activities in full compliance with all federal, provincial and municipal laws and

regulations. Any conduct by a Mortgage Broker/Agent that results in a violation of any criminal or civil code is deemed unethical.

1.1.16 Questionable Activities

The Mortgage Broker/Agent of Real Mortgage Associates Inc. shall report to the

Principal Broker any activities that could be deemed contrary to the Act, whether

that person is employed by Real Mortgage Associates Inc. or otherwise. Real

Mortgage Associates Inc. will report such activities to the Superintendent.