Ontario mortgage brokers face allegations of lying to investors, fraudulent documents
A mortgage broker allegedly used fraudulent documents to help arrange numerous loans, then pocketed anywhere from 10 to 50 per cent of the borrowed amounts.
Another broker was accused of lying to a pair of investors, telling them the $1.5 million private mortgage they were funding was the first loan on the property, when in fact it was the second.
The broker wrote off the error as “virtually academic” in a subsequent email, according to documents filed with the Financial Services Commission of Ontario, known as the FSCO.
And on three separate occasions, the provincial regulator discovered individuals who claimed to be brokers and were providing mortgage broker services without a licence.
These are just some of the complaints about Ontario mortgage brokers filed with the commission last year and obtained by The Canadian Press through a Freedom of Information request.
Published by the Canadian Press.