This is an official version.

 

Copyright © 2009: Queens Printer,
St. John's, Newfoundland and Labrador, Canada

Important Information
(Includes details about the availability of printed and electronic versions of the Statutes.)

 

Table of Regulations

Main Site

How current is this regulation?

 
 

CONSOLIDATED NEWFOUNDLAND AND LABRADOR REGULATION 1006/96

Mortgage Brokers Regulations
under the
Mortgage Brokers Act
(O.C. 96-294)

Amended by:

58/97
SNL2008 cC-37.0001 s49 (not in force therefore not included here)
2009 cC-31.1 s111

CONSOLIDATED NEWFOUNDLAND AND LABRADOR REGULATION 1006/96

Mortgage Brokers Regulations
under the
Mortgage Brokers Act
(O.C. 96-294)

Under the authority of section 13 of the Mortgage Brokers Act and the Subordinate Legislation Revision and Consolidation Act , the Lieutenant-Governor in Council makes the following regulations.

REGULATIONS

Analysis



Short title

        1. These regulations may be cited as the Mortgage Brokers Regulations .

119/78 s1

Back to Top

Definitions

        2. In this regulations

             (a)  "Act" means the Mortgage Brokers Act ; and

             (b)  "securities underwriters" means a person, firm or company who has purchased from an issuer of a security, as the term "security" is defined in the Securities Act , the right to sell all or a part of that security or who sells the security for an issuer of it or who participates or who has a direct or indirect participation in the undertaking or is otherwise interested in the sale of the security of an issuer of it and includes a person, firm or company who acts as an agent of an issuer in the sale, placement, solicitation or other disposition of the security.

Back to Top

Application

        3. (1) An application for registration as a mortgage broker shall be made to the registrar

             (a)  where the applicant is a partnership or corporation in the form prescribed by the minister; or

             (b)  where the applicant is a sole proprietor in the form prescribed by the minister.

             (2)  A registration remains in effect subject to the filing of annual reports and payments of an annual fee as prescribed by the minister until it is withdrawn by the registered person or is suspended or cancelled under the Act.

             (3)  A certificate of registration shall be in the form prescribed by the minister.

119/78 s3; 131/93 s1; 58/97 s1

Back to Top

Rep. by 2009 cC-31.1 s111

        4. [Rep. by 2009 cC-31.1 s111]

2009 cC-31.1 s111

Back to Top

Bonus

        5. (1) A mortgage broker and mortgage lender shall not charge a bonus in excess of 1% of the principal amount of a mortgage plus $100.

             (2)  In these regulations, "bonus" shall not include an application fee charged by a mortgage lender.

133/87 s2

Back to Top

Registration exemptions

        6. The following shall be exempt from the registration provisions of the Act:

             (a)  a lawyer acting in the ordinary course of his or her profession;

             (b)  a real estate agent, licensed under the Real Estate Trading Act , acting in the ordinary course of his or her business;

             (c)  a mortgage broker receiving less than $1,000 annually from the business of mortgage brokering; and

             (d)  a securities underwriter.

119/78 s6; 133/87 s3

Back to Top

"Actual amount" defined

        7. For the purpose of paragraph 8(a) of the Act, the term "actual amount" shall have the following meaning:

             (a)  in the case of non-revolving credit, the amount of money to be paid to the borrower or to be disbursed on his or her direction;

             (b)  in the case of revolving credit, the maximum amount of money approved to be paid to the borrower or to be disbursed on his or her direction during the term of the agreement.

133/87 s4

Back to Top

Rate calculation described

        8. The maximum annual effective rate of interest used in a disclosure statement established under section 4 shall be calculated as follows:

assume a mortgage with a face value of $20,000 at an interest rate of 10% for a 5 year term

                   the interest charge per year is $2,000

                   assume a bonus of $200

                   divide the bonus by 5 = $40

                   the average annual cost is $2,040

                   the maximum annual effective rate of interest is:

                   the average annual cost x 100
the actual proceeds of the mortgage = the maximum annual
                                                                effective rate of interest

                   or $2,040 x 100
     $19,800                              = 10.3%

119/78 s7

Back to Top

Advertisements

        9. A mortgage broker shall, when advertising, indicate that he or she is a mortgage broker and the address of his or her place of business.

119/78 s7A

Back to Top

Repeal

      10. The Mortgage Brokers Regulations (No. 1), 1976, Newfoundland Regulation 119/78, are repealed.