Broker calls on peers to report unlicensed individuals

Broker calls on peers to report unlicensed individuals

Broker calls on peers to report unlicensed individuals Following a FSCO warning about unlicensed individuals who advertise mortgages on posters throughout the Greater Toronto Area, one broker is calling on his peers to report them to the regulatory commission. 

"We as a broker community need to step up and report these signs to FSCO immediately," GTA-based broker, Deepak Bansal wrote on MortgageBrokerNews.ca. "In my opinion, these signs are not professional and are creating a bad image for our industry."

An unlicensed individual is soliciting mortgages in one major city through the use of posters.

“The Financial Services Commission of Ontario (FSCO) is warning consumers that the entity 2nd Mortgages is not licensed to do mortgage brokering business in Ontario,” FSCO wrote in an official release.

The person or persons purporting soliciting mortgages states, on posters placed throughout Brampton, Ontario, that the company offers home equity loans for borrowers with bad or good credit. They also list a phone number.

“Consumers should exercise caution if they are contacted by anyone from these coordinates,” the release from FSCO states. “If consumers arrange a mortgage from a mortgage brokerage, broker or agent that is not licensed in the province, they are not protected under the Mortgage Brokerages, Lenders and Administrators Act, 2006 which holds Ontario’s mortgage brokerages, administrators, brokers and agents to specific standards.”
9 Comments
  • Deepak Bansal 2015-01-06 1:35:01 PM
    There are a lot of these signs throughout the GTA and majority of them are not compliant with FSCO advertising standards. In order for this to stop, FSCO needs to start imposing hefty fines/penalties for solicitations from unlicensed persons and for signage that is unethical and/or not compliant. In addition, we as a broker community need to step up and report these signs to FSCO immediately. In my opinion, these signs are not professional and are creating a bad image for our industry.
    Post a reply
  • Ranjit Dhillon Centum Mortgage Smart 2015-01-06 6:05:02 PM
    Well Said Deepak, These signs are all over on the traffic light polls and mail boxes... and these people are creating a bad name for the professionals
    Post a reply
  • Tony 2015-01-06 8:27:46 PM
    I'm afraid FSCO regulates only licensed agents. Those who are not licensed and do not belong to any organization are simply not regulated by somebody who's membership they've never accepted. I am not sure why would those be considered as criminals. Was there any fraud committed by those people who distribute posters that are not in compliance with organization that they are not members of? Are these people criminals just by exercising their constitutional right to earn living? Do we not live in democratic society where suspicion is not considered to be crime?
    Post a reply