Protection of Residential Mortgage or Hypothecary Insurance Regulations (SOR/2012-231)

Marginal note:General criteria

• 3 (1) The mortgage or hypothecary lender must be

  • (a) a corporation whose articles do not restrict its powers to lend in the jurisdictions in which it operates; and

  • (b) one of the following:

    • (i) a financially sound institution with at least $3,000,000 of unencumbered paid-up capital that is incorporated by or under an Act of Parliament or of the legislature of a province,

    • (ii) a federal financial institution or an authorized foreign bank within the meaning of section 2 of the Bank Act,

    • (iii) a trust, loan or insurance corporation that is incorporated and regulated by or under an Act of the legislature of a province, or

    • (iv) a cooperative credit society that is incorporated and regulated by or under an Act of the legislature of a province.

• Marginal note:Criteria for underwriting

  (2) To underwrite mortgage or hypothecary loans, the mortgage or hypothecary lender must, in addition to meeting the criteria set out in subsection (1),

  • (a) have at least three years’ experience underwriting residential mortgage or hypothecary loans in Canada and the capability and resources to underwrite such loans and make loan commitments;

  • (b) be a subsidiary of a parent corporation that is a qualified mortgage lender and that meets the criteria set out in paragraph (a), if the parent corporation undertakes to fulfil the task of underwriting residential mortgage and hypothecary loans in Canada for the subsidiary and to be accountable to the approved mortgage insurer for the subsidiary’s performance in relation to those loans; or

  • (c) have paid-up capital of at least $5,000,000 and employ at least two mortgage officers who each have a minimum of ten years’ residential mortgage or hypothecary underwriting experience and who are responsible for underwriting the lender’s residential mortgage and hypothecary loans in Canada.

• Marginal note:Criteria for administering

  (3) To administer mortgage or hypothecary loans, the mortgage or hypothecary lender must, in addition to meeting the criteria set out in subsection (1),

  • (a) have at least three years’ experience administering residential mortgage or hypothecary loans in Canada and the capability and resources to administer such loans and meet all insurance conditions;

  • (b) be a subsidiary of a parent corporation that is a qualified mortgage lender and that meets the criteria set out in paragraph (a), if the parent corporation undertakes to fulfil the task of administering residential mortgage and hypothecary loans in Canada for the subsidiary and to be accountable to the approved mortgage insurer for the subsidiary’s performance in relation to those loans; or

  • (c) have paid-up capital of at least $5,000,000 and employ at least two mortgage officers who each have a minimum of ten years’ residential mortgage or hypothecary administration experience and who are responsible for administering the lender’s residential mortgage and hypothecary loans in Canada.

• Marginal note:Exception — designated cooperative credit societies

  (4) A cooperative credit society referred to in subparagraph (1)(b)(iv) need not meet the criteria set out in subsection (2) to underwrite mortgage or hypothecary loans or in subsection (3) to administer them if, before the coming into force of these Regulations, it was designated as a qualified mortgage lender under an agreement as defined in section 43 of the Act.