Chapter 17: Submitting the Application and Obtaining a Commitment
July 17, 2023
- The areas to review is Credit, Property and Employment
- If a Mortgage Agent doesn’t have appropriate funding ratios Lenders may decide to stop doing business with him or her.
- The lack of notes.
- Applicants’ Names
- Property Address (address of the security)
- Mortgage Amount
- Interest Rate
- Payment Amount
- Payment Frequency
- Term
- Closing Date
- Prepayment Privileges
- Conditions of approval
- Terms of the approved mortgage (such as fees, appraisal requirements, etc.).
a) An employed individual’s income?
- Income and employment confirmation by way of recent pay stub or a letter from employer confirming income and length of employment on employer’s letterhead and the most recent income tax Notice of Assessment.
b) A self-employed individual’s income?
- A copy of three (3) years income tax Assessments and Financial Statements;
- Contact the Underwriter to understand why the application was declined
- Contact the BDM if he or she disagrees with the decision
- Submit the application to another Lender
- Filogix Expert, https://www.filogix.com/expert/filogix-expert
- Newton Connectivity Systems, https://www.newton.ca/velocity
- MortgageBoss, https://www.m3-tech.ca/boss
- Currently a mortgage agent license, with legislation changing to a level 2 license
- Currently a mortgage agent license, with legislation changing to a level 1 license
- A brokerage is required to provide detailed disclosure to lenders and investors involved in a mortgage transaction. The forms used for disclosure are:
- Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions
- Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans
- Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period
- Form 2.1 – Renewal Form Waiver: To Reduce the Waiting Period
- Form 3.0 – Information about Investor/Lender in a Non-Qualified Syndicated Mortgage
- Form 3.1 – Suitability Assessment for Investor/Lender in a Non-Qualified Syndicated Mortgage
- Form 3.2 – Disclosure Statement for Investor/Lender in a Non-Qualified Syndicated Mortgage
- Form 3.2.1 – Supplemental Disclosure for Retail Investors in a High-risk Syndicated Mortgage
- No later than two business days before the earliest of the following events. This time period can be reduced to one business day if the investor/lender consents in “Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period”
- To ensure there are no errors
- A commitment that has conditions that must be met before the lender will fund the mortgage
- Common conditions include evidence of:
- Employment and income
- Down payment
- Assets
- Purchase and Sale Agreement, and
- Other such documentation that may be required by the lender to prove statements made in the application