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Part II .

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Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers

Regulations

made under

Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 127/2020 (effective November 1, 2021)

amended to N.S. Reg. 219/2022 (effective November 1, 2022)

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Definitions

Standards of conduct

Duty toward authorizing brokerage

Dishonesty, fraud, crime or illegal conduct

Remuneration other than from authorizing mortgage brokerage

Non-monetary incentives

Brokering mortgages in licensee name

Information to be contained in advertisement

Information to be disclosed in correspondence

Duty to provide licence information

Citation

1 These regulations may be cited as the Standards of Conduct for Mortgage Brokers and

Associate Mortgage Brokers Regulations .

Definitions

2 In these regulations,

“Act” means the Mortgage Regulation Act ;

“authorizing mortgage brokerage”, in relation to a mortgage broker or associate

mortgage broker, means the mortgage brokerage on whose behalf the mortgage

broker or associate mortgage broker is authorized to broker mortgages.

Standards of conduct

3 The requirements set out in these regulations are prescribed as standards of conduct for

every licensed mortgage broker and licensed associate mortgage broker.

Duty toward authorizing brokerage

4 A mortgage broker or associate mortgage broker must not do or omit to do anything if

the action or omission might reasonably be expected to result in the authorizing

mortgage brokerage contravening or failing to comply with the Act or its regulations.

Dishonesty, fraud, crime or illegal conduct

5 A mortgage broker or associate mortgage broker must not act, or do or omit to do

anything, in circumstances in which the mortgage broker or associate mortgage broker

ought to know that by acting, doing the thing or omitting to do the thing the mortgage

broker or associate mortgage broker is being used by a borrower, mortgage lender,

investor or any other person to facilitate dishonesty, fraud, crime or illegal conduct.

Remuneration other than from authorizing mortgage brokerage

(1) Except as provided in

Section 7 for non-monetary incentives, a mortgage broker or

associate mortgage broker must not receive, directly or indirectly, any fee or other

remuneration for brokering mortgages from a person other than the authorizing

mortgage brokerage.

(2) The prohibition in subsection (1) does not apply to a fee or other remuneration paid

to a mortgage broker or associate mortgage broker from the authorizing mortgage

brokerage from money received by the authorizing mortgage brokerage from

another person for services provided by the mortgage broker or associate mortgage

broker.

Non-monetary incentives

7 A mortgage broker or associate mortgage broker may receive, directly or indirectly, an

incentive other than money from a mortgage lender or a financial institution for

brokering mortgages if all of the following conditions are satisfied:

(

a) the authorizing mortgage brokerage consents to the provision of the

incentive;

(

b) the authorizing mortgage brokerage and the mortgage lender or financial

institution have a written agreement governing the provision of the

incentive;

(

c) the mortgage broker or associate mortgage broker has a written agreement

with the mortgage lender or financial institution governing the provision of

the incentive;

(

d) each of the agreements referred to in clauses (

b) and (

c) requires the

mortgage lender or financial institution to give the authorizing mortgage

brokerage particulars about all of the following matters both periodically

and on request:

(

i) each incentive provided by the mortgage lender or financial

institution to the mortgage broker or associate mortgage broker

during the applicable period,

(ii) if an incentive entitles the mortgage broker or associate mortgage

broker to exercise 1 or more options in the future, particulars of each

option exercised during the applicable period.

Brokering mortgages in licensee name

8 A mortgage broker or associate mortgage broker must not broker mortgages in a name

other than the name set out on their licence.

Information to be contained in advertisement

(1) All of the following is prescribed as the information required to be contained in an

advertisement of a mortgage broker or associate mortgage broker by clause

58(3)(

b) of the Act:

(

a) for an authorizing mortgage brokerage whose name as set out on its licence

is, or includes, a franchise name that the authorizing mortgage brokerage is

permitted to use under a franchise agreement, a statement clearly indicating

that the mortgage brokerage is independently owned and operated;

(

b) at least 1 reference to the mortgage broker or associate mortgage broker that

includes 1 of the following titles:

(

i) for a mortgage broker, the title “mortgage broker” or “broker” or an

abbreviation of either of those titles,

(ii) for an associate mortgage broker, the title “associate mortgage

broker”, “mortgage broker associate”, “associate broker”, “mortgage

associate” or “associate” or an abbreviation of any of those titles.

(2) In addition to the titles prescribed by clause (1)(b), an advertisement may include

an equivalent title in another language.

Information to be disclosed in correspondence

(1) All of the following is prescribed as the information required to be disclosed under

subsection 60(1) of the Act by a mortgage broker or associate mortgage broker in

all correspondence and other written material prepared or used in the course of the

business:

(

a) the name and licence number of the mortgage broker or associate mortgage

broker, as set out on their licence;

(

b) the name and licence number of the authorizing mortgage brokerage, as set

out on its licence;

(

c) for an authorizing mortgage brokerage whose name as set out on its licence

is, or includes, a franchise name that the authorizing mortgage brokerage is

permitted to use under a franchise agreement, a statement clearly indicating

that the mortgage brokerage is independently owned and operated.

(2) The names and licence numbers referred to in clauses (1)(

a) and (

b) must be

clearly and prominently displayed wherever they are required to be disclosed.

Duty to provide licence information

11 When requested, a mortgage broker or associate mortgage broker must give a person all

of the following information:

(

a) the name and licence number of the mortgage broker or associate mortgage

broker, as set out on their licence;

(

b) the name and licence number of the authorizing mortgage brokerage, as set

out on its licence.

Legislative History

Reference Tables

Standards of Conduct for Mortgage Brokers and

Associate Mortgage Brokers Regulations

N.S. Reg.

127/2020

Mortgage Regulation Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Standards of Conduct for Mortgage Brokers and Associate

Mortgage Brokers Regulations made under the Mortgage Regulation Act includes all of the following regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

127/2020

Nov 1, 2021

date

specified (date that Act comes into force on proclamation)

Oct 9, 2020

219/2022

Nov 1, 2022

date specified

Oct 7, 2022

The following regulations are not

yet in force and are not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

9(1)(b)(ii) ..........................................

rs . 219/2022

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections

Note

Effective

date

Repealed and Superseded

N.S.

Regulation

Title

In force

date

Repealed

date

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.