A mortgage sub-broker has been barred from reapplying for a broker license after a regulator investigation.
The Financial Institutions Commission in British Columbia (FICOM) has found that Jorawar Singh Gosal submitted fraudulent mortgage documents to lenders.
“Mr. Gosal conducted business in a manner prejudicial to the public interest contrary to section 8(l)(i) of the Mortgage Brokers Act in that he altered borrowers' Canada Revenue Agency documents and presented these documents to lenders as part of mortgage applications, thereby misrepresenting the income of the borrowers,” the Registrar of Mortgage Brokers wrote in a consent order, which was obtained by MortgageBrokerNews.ca.
Gosal, who formerly worked as a sub-broker for Dominion Lending Centres
Gold Financial Services, agreed with the findings made against him, according to the consent order.
“Mr. Gosal (currently unregistered) is not eligible to apply, and the Registrar will not accept an application for registration by Mr. Gosal under the Act, for a period often (10) years from the date the Registrar signs this Consent Order,” the consent order says. “Mr. Gosal hereby agrees not to apply for registration under the Act for ten years from the date the Registrar signs this Consent Order.”
Gosal will pay $4,000 for partial investigative costs.
According to the agreed facts in the consent order, the Registrar received a complaint from a credit union manager on or about December 3,2014 that Gosal had submitted false Canada Revenue Agency documents.
The manager said the mortgage was funded in July 2014. The discrepancy was found after the borrower applied for a line of credit at the same institution and submitted CRA documents.
“Gosal admits that he altered the borrower's 2012 and 2013 Notices of Assessment without the borrower's knowledge or consent in order to secure more favourable mortgage terms from the credit union,” the Registrar said in the consent order.
To read the entire consent order, click here