GENERAL INFORMATION ON MORTGAGE INSURANCE

 Every institution that charges borrowers an amount for mortgage insurance must disclose

  • (a) the coverage provided by the mortgage insurance, including which party is protected by the mortgage insurance and which party pays for it;

  • (b) the manner in which the amount that the institution is being charged by the insurer for the mortgage insurance is calculated; and

  • (c) any other information in respect of the mortgage insurance that could reasonably be expected to have an impact on the borrower.

DISCLOSURE OF INFORMATION RELATING TO ARRANGEMENTS BETWEEN INSTITUTIONS AND INSURERS

  •  (1) Subject to subsection (2), every institution that enters into an arrangement with an insurer to receive payments or benefits from the insurer, shall, if the insurer also provides the institution with mortgage insurance, disclose in a single document information relating to all of their business arrangements with the insurer in respect of that mortgage insurance, including

    • (a) the nature of the arrangements;

    • (b) any payments or benefits referred to in section 7 or 8 that are received directly or indirectly by the institution from the insurer or any of its affiliates; and

    • (c) any payments or benefits referred to in section 9 or 10 that are expected to be received directly or indirectly by the institution from the insurer or any of its affiliates.

  • (2) Subsection (1) does not apply in respect of a business arrangement entered into by an institution to provide the insurer with products and services that are offered by the institution to its customers and to the public in the normal course of business.

 If an institution receives payments or benefits in respect of mortgage insurance from an insurer under an arrangement referred to in subsection 6(1) on a per residential mortgage basis, the institution must disclose

  • (a) in respect of each type of activity that is the subject of such payments or benefits, the amount of each of those payments or benefits expressed in dollars; and

  • (b) in respect of a particular borrower that obtains a residential mortgage from the institution, the amount of each of those payments or benefits expressed as a percentage of the amount that the institution charges the borrower for mortgage insurance.

 If, on the first day of a fiscal quarter, an institution has, in any of the first four fiscal quarters of the preceding five fiscal quarters, received payments or benefits in respect of mortgage insurance from an insurer under an arrangement referred to in subsection 6(1) on a basis other than that referred to in section 7 and each of those five preceding fiscal quarters begins on or after July 1, 2010, the institution must disclose

  • (a) in respect of each type of activity that is the subject of such payments or benefits, the total amount, expressed in dollars, of such payments or benefits received from that insurer in those first four fiscal quarters;

  • (b) each of the total amounts referred to in paragraph (a) expressed, respectively, as a percentage of the total amount paid to the insurer by the institution in respect of policies and guarantees in those first four fiscal quarters; and

  • (c) in respect of a particular borrower that obtains a residential mortgage from that institution, the amounts, expressed in dollars, that are determined by multiplying the amount that the institution charges the borrower for mortgage insurance by each of the percentages referred to in paragraph (b).