Anti-Money Laundering (AML)
This should be done proactively by brokers to detect potential signs of mortgage fraud and prevent being used to facilitate it.
What is looking for red flags and reporting suspicious activity?
Under the revised policy, broker fees can be charged for this type of transaction if written consent is obtained from the lender
What is a port (straight, increase, or decrease)?
This action involves reviewing brochures, fact sheets, or other materials from industry experts to detect and prevent mortgage fraud.
What is reviewing information from mortgage insurers, mortgage broker associations, and other industry experts?
Agents involved in private mortgage investments or lending transactions must hold at least this level of certification.
What is Level 2 Mortgage Agent or Mortgage Broker?
When obtaining personal information for mortgage purposes, this is a necessary action that the client must provide, which is typically done via forms used for specific products.
What is consent?
This government website can be used to verify the validity of an Ontario driver’s license.
What is the Ministry of Transportation’s Driver’s License Check website?
When a client uses lender servicing for free but opts to work with an agent or broker, this is the maximum broker fee that can be charged for a port or blended rate.
What is $1,500 per file, with written consent from the lender?
This action should be taken if a broker suspects that the mortgage, its renewal, or the investment may be unlawful.
What is notifying the lender in writing as soon as possible if there is reason to doubt the legality of the mortgage?
Private lenders must be provided with this document, which explains the risks associated with construction and development loans.
What is the Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans (Form 1:1)?
Clients may withdraw their consent to the collection, use, and disclosure of their personal information by providing this type of notice.
What is written notice?
If a client answers "NO" on their PEP declaration form but a positive PEP result appears in the AML Assist screening, this action should be taken before proceeding with the deal.
What is completing thorough due diligence, including social media and online searches, and emailing the findings to the AML officer(s)?
For an ELV (Equity Line Visa) or HELOC (Home Equity Line of Credit) transaction, the broker fee cannot exceed this amount per file.
What is $1,500 per file?
This form of identification is not acceptable for verifying a borrower's identity in Ontario.
What is an Ontario health card or a Social Insurance Number (SIN) card?
The purpose of this two-business day period is to allow private investors and lenders to thoroughly review the Investor/Lender Disclosure Statement and seek legal advice.
What is the two-business day waiting period?
The Mortgage Centre-Durham may disclose a client’s personal information to third parties in these situations, including when required or authorized by law, such as a court subpoena.
What is when it is required or authorized by law?
This must be indicated in the Risk Assessment in CRM if a PEP screening shows that a client is a PEP, even if the client declared "NO" on the form.
What is marking the client as a PEP in the Risk Assessment?
For private or MIC lending, the broker fee can be this amount, whichever is greater.
What is a minimum of $2,500 or 1% of the total mortgage amount?
This practice is crucial to ensure transparency and accountability when working with mortgage applications and related documents.
What is keeping detailed records?
This risk must be explained to private investors and lenders, especially regarding the order of claims on the property (i.e., first, second, or third mortgage).
What is the risk of the rank of the mortgage?
This term refers to information gathered in connection with mortgage applications, pre-approvals, or requests for information about mortgages, loans, or insurance products.
What is personal information?
This must happen before submitting any high-risk deals due to a positive PEP screening to the lender.
What is summarizing the deal in an email to the AML officer(s) prior to submission?
In any case where a broker fee is more than 115 BPS for an A-/B lender, this must be done.
What is disclosing the fee to the client in writing and noting it in the file?
This method is considered a best practice for verifying a borrower’s identity, often involving a combination of authentication factors.
What is multi-factor authentication (MFA)?
After a mortgage closes, brokers must continue to monitor for this type of fraud and inform the lender in writing if any doubts arise regarding the mortgage's legality or accuracy.
What is mortgage fraud?
To ensure the protection of personal information, The Mortgage Centre-Durham limits access to client data to only those employees or associates who need to view it as part of their work. This type of agreement is required from employees and agents.
What is a confidentiality agreement?