Part 3 - Accounting, Records and Reporting Requirements

Division 3 - Requirements for Mortgage Brokerages


104 In this Division, “brokerage” means mortgage brokerage.
  Oct 1/06

Mortgage Deal Records
105(1) A brokerage shall keep separate and have available at its registered business office in Alberta or the City of Lloydminster all records for each mortgage deal or potential deal including signed copies of each service agreement, mortgage administration agreement, commitment letters, mortgage applications, credit bureau reports, cost of credit disclosures, investor lender disclosure, banking records, accounts and supporting documentation made in the course of the brokerage’s business in relation to a mortgage deal or potential deal in Alberta.
105(2) The records must identify each mortgage deal by a sequential code and use that code for the corresponding trust ledger if applicable and must contain the following:
(a) the nature of the mortgage deal or potential deal;
(b) a description of the real estate;
(c) the mortgage amount;
(d) the names of the lenders and borrowers;
(e) the amount of the deposit or investment received, if any, and a record of the disbursements;
(f) the amount of commission or other remuneration received, if any, and the name of the party paying it; and
(g) the extent of the distribution of the client’s information to third parties.
105(3) If the brokerage keeps in Alberta money received in trust in connection with other business, the brokerage shall keep it separate from money received in trust in connection with mortgage dealings in Alberta.
  Oct 1/06

Brokerage Must Maintain Trust Account
106 When a brokerage in the course of its business receives funds on behalf of clients or investors it shall:
(a) open and maintain at least one trust or pooled trust account for the deposit of such funds;
(b) ensure that the broker is an authorized signing authority for each trust or pooled trust account and control the receipts and disbursements on each account;
(c) issue a written receipt if money is received in the form of cash;
(d) ensure that cheques used to disburse funds from a trust or pooled trust account are numbered and identified with the words “Trust Account;”
(e) account for all cheques, including but not limited to void cheques, as part of the records maintained by the brokerage;
(f) make every disbursement from a trust or pooled trust account by cheque or bank transfer and these documents shall be cross-referenced in sufficient detail to permit them to be identified with the corresponding disbursement or disbursements recorded in the brokerage’s books required by section 25 of the Act or by these Rules; and
(g) not issue a cheque, allow a bank transfer or present a cheque for payment or collection unless there is, in the trust or pooled account against which it is drawn, a sufficient credit balance, to cover the cheque.
  Oct 1/06

Unauthorized Payments From Trust
107 A brokerage shall not pay any of the brokerage’s personal or general office expenses, commission or other remuneration payable to the brokerage’s own authorized officials, brokers or associates out of an account in which money is held in trust.
  Oct 1/06

Pooled Disbursement Account
108 A pooled disbursement account may be used by a brokerage to make payments only if the following conditions are met:
  (a) only money that the brokerage receives in a mortgage dealing may pass through the account;
  (b) disbursements on behalf of a client may be made only with a transfer forthwith of money held for that client from another account in which money is held in trust to cover the disbursement; and
  (c) the account must be designated as a trust account.
    Oct 1/06

Brokerage Management Fees
109 If sufficient funds are available, a brokerage shall withdraw all earned fees from the money held in trust on behalf of the client at least once a month, but not in advance unless otherwise provided in the mortgage brokerage service agreement.
  Oct 1/06, Resolution 2010-1

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