The Globe and Mail reports in its Saturday, May 27, edition that the Financial Services Commission
of Ontario says it disciplined two
mortgage brokers who funnelled
business to Home Capital Group (HCG), marking the first disclosure
of action taken against dealers
who submitted fraudulent loan
applications to the lender.
A Bloomberg dispatch to The Globe reports that FSCO conducted
its own review into HCG
in relation to it severing
ties in 2015 with 45 brokers
who used falsified client income
on applications. FSCO
found that Mortgage Alliance broker Gagandeep
Duggal and Mortgage Architects agent Zaheer Mohammad
were not complying with the
rules. FSCO spokesman Malon Edwards says, "FSCO takes allegations of
fraud very seriously, and is committed
to protecting consumers
in the mortgage brokering sector." He says most of the brokers and
agents that were part of its HCG review continue to be
licensed. The level of proof is
higher for a regulator to discipline
a broker than for a company to
cut ties with mortgage dealers, he
says.
Mr. Duggal
still works at Mortgage Alliance.
Mortgage Architects terminated
Mr. Mohammad after the FSCO released its
findings last year.
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