The Financial Services Regulatory Authority of Ontario (FSRA) has introduced amended disclosure forms for non-qualified syndicated mortgages. The amended forms, which are now in effect, are: 

• Form 3.0 - Information about Investor/Lender in a Non-Qualified Syndicated Mortgage
• Form 3.1 - Suitability Assessment for Investor/Lender in a Non-Qualified Syndicated Mortgage
• Form 3.2 - Disclosure Statement for Investor/Lender in a Non-Qualified Syndicated Mortgage

The amended forms were prepared in close consultation with MPC, as well as other stakeholders. As FSRA notes, these forms were designed “with the aim of reducing regulatory burden when mortgage brokerages are working with more sophisticated investors, who are generally more knowledgeable and experienced with complex investments.” Additionally, “the amended forms do not reduce the amount of disclosure or the obligations of mortgage brokerages that are dealing with retail investors.”

“We believe that these changes will result in a significant reduction in the time and costs for industry without compromising investor protection for retail investors,” said Huston Loke, FSRA’s Executive Vice President of Market Conduct. “We will be performing compliance reviews on a periodic basis to determine eligibility against the threshold.” 

Click here to view the FAQ page FSRA has prepared regarding these forms.  

We also remind brokers about Supplemental Disclosure Form 3.2.1. FSRA requires that mortgage brokers present Form 3.2.1 to retail investors involved in high-risk syndicated mortgage transactions that have one or more of the following risk factors:

• High LTV
• Subordination
• Conflict of Interest

Click here for more information regarding Supplemental Disclosure Form 3.2.1.

A technical note regarding FSRA forms: MPC recommends using later versions of Internet Explorer to download any forms from FSRA. Members have had technical issues when using other browsers, such as Google Chrome, and when using mobile devices.

MPC welcomes comments regarding these amended FSRA forms. We thank FSRA for working with MPC and the community to reduce regulatory burden while enhancing public trust in our mortgage brokering sector.