Newspaper article The Canadian Press

Fraud, Misinformation Cited in Complaints Filed about Ontario Mortgage Brokers

Newspaper article The Canadian Press

Fraud, Misinformation Cited in Complaints Filed about Ontario Mortgage Brokers

Article excerpt

Fraud cited in mortgage broker complaints

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TORONTO - Consumers filed 91 complaints about mortgage brokers to the Financial Services Commission of Ontario, the watchdog that regulates mortgage brokers in the province, in fiscal 2014-2015. The following is a sampling of those complaints, obtained by The Canadian Press through a freedom-of-information request:

The Right of way -- The complainants, private investors, claim they were led to believe that a cottage or a home could be built on the parcel of land they were providing a mortgage loan for. They later found out that the property was a right of way. "Had we been made aware of this fact, neither of us would have invested in the $80,000 second mortgage," they wrote in a letter dated Dec. 9, 2014. "A rudimentary search of title would have revealed this limitation, which you failed to obtain."

The regulator issued a warning letter to the broker on June 26, 2015. "This matter has been noted and should future occurrences of non-compliance be brought to our attention, FSCO may consider this a repeat occurrence," the letter reads.

The alleged fraudster -- One complainant, in an email dated, March 2, 2015, urged the regulator to launch an undercover investigation into a particular broker over allegations that he committed numerous counts of fraud. The complainant claims the broker has used fraudulent documents to arrange mortgage and lines of credit for his clients and then kept anywhere from 10 to 50 per cent of the borrowed amounts.

"My intention in reporting his activities is simply that honest businesses are being ripped off and while these lending crimes may seem like faceless crimes, other honest borrowers like me pay the price for these crimes ultimately," the complainant wrote.

FSCO responded by issuing a letter of caution on May 19, 2015. …

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