Are high ratio mortgage lenders who fail to comply with section 2 of the LPA Regulation, or do not comply with the High Ratio Statement?
Alberta, Canada
The following excerpt is from Bank of Montreal v. Hoehn, 2010 ABQB 405 (CanLII):
[109] Section 2 of the LPA Regulation is directory. However, as noted in Alberta Teachers’ Association v. Alberta (Information and Privacy Commissioner), directory provisions must also be obeyed. High ratio mortgage lenders who omit the High Ratio Statement do so at their peril. If a lender does not comply with section 2 of the LPA Regulation, the lender will be required to lead evidence that the mortgagor was informed of the potential for a deficiency judgment in the event of default by the mortgagor or a transferee, in order for the court to consider granting deficiency judgment. Specific Fact Patterns Before the Court
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