It was a busy week for FSCO and brokers are applauding the commission's efforts.
"Way to go FSCO, the mortgage brokerage business is becoming an easy target for fraudsters to defraud money from the consumers," Angela Wong-Liao
of Invis wrote on MortgageBrokerNews.ca. "FSCO as the governing body of our industry must continues to alert and protect the public."
The comment came after FSCO warned that Integ Financial Consulting Inc. is not licensed to conduct mortgage brokering business in Ontario.
“FSCO has been notified that the company is soliciting the public on its website, integfinancial.com, offering ‘8% annual fixed rate interest, 2 or 3 year terms’ and soliciting individuals in the financial services industry to "learn how to GROW YOUR WORTH IN BUSINESS" by selling syndicated mortgage investments,” according to a FSCO release.
The commission also lists Warren Newcombe and Michelle Callipari as Integ Financial employees who do not hold licenses.
According to the company’s website: InTeg Financial is not a mortgage broker or investment dealer. This is not an offer to sell securities. Licensed mortgage agents / brokers close all transactions. All mortgages are done through Marks and Associates, Financial Services Commission of Ontario (FSCO) License # 10591.
Although the company links to a brokerage with a valid FSCO license, they are still in violation of MBLAA regulations, according to the Mortgage Brokerages, Lenders and Administrators Act, 2006 2 (1) which states that anyone doing the following is considered to be “dealing in mortgages”:
1. Soliciting another person or entity to borrow or lend money on the security of real property.
2. Providing information about a prospective borrower to a prospective mortgage lender, whether or not this Act governs the lender.
3. Assessing a prospective borrower on behalf of a prospective mortgage lender, whether or not this Act governs the lender.
4. Negotiating or arranging a mortgage on behalf of another person or entity, or attempting to do so.
5. Engaging in such other activities as may be prescribed. 2006, c. 29, s. 2 (1).
"(Integ Financial) is discussing investing in mortgages, period. And that’s not allowed,” Glenn May-Anderson, president and principal broker of FDS Broker Services told MortgageBrokerNews.ca. “It is good to see FSCO is getting tough in this area.
“If these companies can't follow basic mortgage industry licensing rules, how can anyone be sure they have practices in place that adequately protect consumers?"