Protection of Residential Mortgage or Hypothecary Insurance Regulations

The Protection of Residential Mortgage or Hypothecary Insurance Regulations were made by His Excellency the Governor General in Council on November 1, 2012, pursuant to paragraphs 41(b) to (e) and (h) of the Protection of Residential Mortgage or Hypothecary Insurance Act. The Regulations were registered under Registration Number 2012-11.

The Regulations set out various requirements for mortgage lenders, including criteria for designating a qualified mortgage lender, underwriting mortgage loans, administering mortgage loans, and reinsuring against risks. They also provide conditions on approved mortgage insurers regarding the replacement of insured mortgages or hypothecary loans and portfolio insurance.

For persons or entities in prescribed relationships with an approved mortgage insurer, the Regulations establish the nature of the relationship to ensure that beneficial ownership exceeds 20% for certain shares.

The fees that an approved mortgage insurer must pay under section 9 of the Act are calculated based on the total amount of direct premiums written during a calendar year. The Regulations also outline transitional provisions, including reduced capital requirements and reinsurance by companies.

These Regulations came into force on January 1, 2013