Trafalgar Square Disclosure Review

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 DocumentLocation in DocumentDescription
Form 9DParagraph 24Legal, Brokerage and other fees
Investor/Lender Disclosure StatementPage 3, # 3Potential for additional earnings by broker of record
Investor/Lender Disclosure StatementPage 3, #4Referring parties may receive additional earnings
Investor/Lender Disclosure StatementPage 3, #5Disclosure of material interest
Investor/Lender Disclosure StatementPage 3, #10 Potential for future remuneration
Investor/Lender Disclosure StatementPage 6, Part D, #2Fees 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 DocumentPage 1, Section 3, point 2Bonus Disclosure
Broker Visit or Call DocumentPage 2, Item “page 3”Fees are being paid by borrower
Broker Visit or Call DocumentPage 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 DocumentLocation in DocumentDescription
Form 9DPage 5, Section “Warning”Warning
Project Fact SheetPage 2 – 3About 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 StatementPage 2 “Caution”Caution, high risk
Broker Visit or Call DocumentPage 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 DocumentLocation in DocumentDescription
Form 9DParagraphs 9, 10, 11, 21, 22, 23Value, LTV, Term, Maximum financing, use of funds
Mortgage Investment Direction & Indemnity AgreementPage 1 # 4 a-3Indemnity of Olympia Trust
Mortgage Investment Direction & Indemnity AgreementPage 1 #5 Tax Implications
Project Fact SheetPage 1, “Valuation” Value of land
Project Fact SheetPage 1, “Face Value of Syndicate Mortgage”Face Value of syndicate mortgage
Project Fact SheetPage 1, “Loan to Value” Loan to Value ratio
Project Fact SheetPage 1, “Term” Maturity and extension dates
Project Fact SheetPage 1, “Maximum Future Increases in the 1st Mortgages” Maximum future mortgages
Loan Commitment Schedule “D”, Section 5.01, 6.02 A-FPotential 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 DocumentLocation in DocumentDescription
Form 9DPage 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 SheetPage 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 5.02Who the trustees are
Investor/Lender Disclosure StatementPage 1, “Important – New Disclosure Duties Effective January 1, 2009”Disclosure Duties for Brokerages and Administrators
Investor/Lender Disclosure StatementPage 3, # 1 & 2Declaration by the mortgage brokerage
Investor/Lender Disclosure StatementPage 5, Part B, #3 Name of mortgage administrator
Investor/Lender Disclosure StatementPage 6, Part C, #1Name and address of borrower
Referral Arrangements/SalesEntire document – Page 1 2 3 4 5Responsibility of referring party vs licensed agent/broker
Broker Visit or Call DocumentPage 2, Item “Page 7”Role of Centro Mortgage
Declaration of Bare TrusteePage 1-2, Paragraphs 1-6 Role of the Bare Trustee

Return to top of page