A review of documents related to the syndicate mortgage loan that funded in part a residential project in Oakville, ON that was marketed as Trafalgar Square. The analysis shows where fees, risks and terms of the loan are disclosed as well as explanations of who certain parties are and what their role is. This loan had used generation 1 disclosure documents.
OVERVIEW
Location: Oakville, ON
Project Type: Residential Condo Building
Developer: Apache Developments
Borrower: 2317511 Ontario Inc.
Fortress Real Developments: Development Consultant
Total Return to lender/investor: Principal: 100%, Interest: 22%
The following tables include links to the specific areas of mortgage documents provided to lenders by mortgage brokers where fees, risks, and the terms of contract are located. There is a table for each generation, for example Generation 1 fees, Generation 2 fees and so on. The last set of tables is always Roles, which highlight the areas in the documents where the role of the parties involved are clearly defined.
Trafalgar Square – Generation 1 Fee Disclosure
Here are the documents where FEES were disclosed in generation 1 documents as well as the exact location they can be found in the document. For reference click on the location to see the specific disclosure language.
| Name of Document | Location in Document | Description |
| Form 9D | Paragraph 24 | Legal, Brokerage and other fees |
| Investor/Lender Disclosure Statement | Page 3, # 3 | Potential for additional earnings by broker of record |
| Investor/Lender Disclosure Statement | Page 3, #4 | Referring parties may receive additional earnings |
| Investor/Lender Disclosure Statement | Page 3, #5 | Disclosure of material interest |
| Investor/Lender Disclosure Statement | Page 3, #10 | Potential for future remuneration |
| Investor/Lender Disclosure Statement | Page 6, Part D, #2 | Fees and costs payable by the borrower |
| Loan Commitment | Page 2, “Fees & Deductions” | Fees and Interest Reserve |
| Memo of Understanding | Page 2, #9 & 10 | Obligation to disclose referral and duties of Licensed Mortgage Agents/Broker |
| Broker Visit or Call Document | Page 1, Section 3, point 2 | Bonus Disclosure |
| Broker Visit or Call Document | Page 2, Item “page 3” | Fees are being paid by borrower |
| Broker Visit or Call Document | Page 2, Item “page 6 | Fees are being paid by borrower |
Trafalgar Square – Generation 1 Risk Disclosure
Here are the documents where RISKS were disclosed in generation 1 documents as well as the exact location they can be found in the document. For reference click on the location to see the specific disclosure language.
| Name of Document | Location in Document | Description |
| Form 9D | Page 5, Section “Warning” | Warning |
| Project Fact Sheet | Page 2 – 3 | About interest payments, material disclosure, and major risk factors |
| Loan Commitment | Schedule “B” Section “Please read Carefully” | Cautionary statements about the mortgage investment |
| Investor/Lender Disclosure Statement | Page 2 “Caution” | Caution, high risk |
| Broker Visit or Call Document | Page 1, Section “Disclosure” & Risks and Disclosures” | Outline of Disclosure and risks |
Trafalgar Square – Generation 1 Contract Disclosure
Here are the documents where TERMS were disclosed in generation 1 documents as well as the exact location they can be found in the document. For reference click on the location to see the specific disclosure language.
| Name of Document | Location in Document | Description |
| Form 9D | Paragraphs 9, 10, 11, 21, 22, 23 | Value, LTV, Term, Maximum financing, use of funds |
| Mortgage Investment Direction & Indemnity Agreement | Page 1 # 4 a-3 | Indemnity of Olympia Trust |
| Mortgage Investment Direction & Indemnity Agreement | Page 1 #5 | Tax Implications |
| Project Fact Sheet | Page 1, “Valuation” | Value of land |
| Project Fact Sheet | Page 1, “Face Value of Syndicate Mortgage” | Face Value of syndicate mortgage |
| Project Fact Sheet | Page 1, “Loan to Value” | Loan to Value ratio |
| Project Fact Sheet | Page 1, “Term” | Maturity and extension dates |
| Project Fact Sheet | Page 1, “Maximum Future Increases in the 1st Mortgages” | Maximum future mortgages |
| Loan Commitment | Schedule “D”, Section 5.01, 6.02 A-F | Potential future amendments and the requirement to postpone to future financing |
| Loan Commitment | Schedule “LD” | Acknowledgements and permitted encumbrances |
Trafalgar Square – Generation 1 Role Disclosure
Here are the documents where the ROLES of each party were disclosed in generation 1 documents as well as the exact location they can be found in the document. For reference click on the location to see the specific disclosure language.
| Name of Document | Location in Document | Description |
| Form 9D | Page 1, “Name and Address of the Borrower” | Name and address of borrower |
| Memo of Understanding | Paragraphs 2, 3, 4, 10 & last paragraph | Duty of licensed mortgage agent/broker |
| Project Fact Sheet | Page 1, “Developer Name”, “Borrower Name” | Developer name and borrower name |
| Loan Commitment | Page 1, “Borrower/Mortgagor” | Name of borrower |
| Loan Commitment | Page 3, Paragraph 5, “Solicitor” | Role of Solicitor |
| Loan Commitment | Schedule “D”, Section 5.02 | Who the trustees are |
| Investor/Lender Disclosure Statement | Page 1, “Important – New Disclosure Duties Effective January 1, 2009” | Disclosure Duties for Brokerages and Administrators |
| Investor/Lender Disclosure Statement | Page 3, # 1 & 2 | Declaration by the mortgage brokerage |
| Investor/Lender Disclosure Statement | Page 5, Part B, #3 | Name of mortgage administrator |
| Investor/Lender Disclosure Statement | Page 6, Part C, #1 | Name and address of borrower |
| Referral Arrangements/Sales | Entire document – Page 1 2 3 4 5 | Responsibility of referring party vs licensed agent/broker |
| Broker Visit or Call Document | Page 2, Item “Page 7” | Role of Centro Mortgage |
| Declaration of Bare Trustee | Page 1-2, Paragraphs 1-6 | Role of the Bare Trustee |
An Exculpatory Look at Syndicate Mortgage Investments 
