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$25K penalty for broker raises concerns

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Mortgage Broker News | 14 May 2012, 10:00 AM Agree 0
Regulators are sending a caution to brokers prepared to fudge the truth for clients, fining one errant professional more than $30,000 for a lapse jeopardizing lenders, but also the industry’s reputation.
  • AB Broker | 15 May 2012, 04:04 AM Agree 0
    Should have been a lifetime ban!! It's too bad the article didn't state the name and brokerage firm of the individual. Sadly, there are many more out there. By naming these individuals hopefully we can run them out of our industry.

    I challenge all brokerages to clean house! You know who the bad apples are and if you don't rid yourself of the liability, you are as guilty as the associate doing the fraud!!

    On with the mortgage revolution!
  • anonymous | 15 May 2012, 04:22 AM Agree 0
    As a mortgage broker, I recently lost 2 deals to bank reps with a lender who 'made it easy' for clients - apparently they 'made it easy' by not asking/using appropriate docs/information--but I have no proof. Hope there is as much scrutiny on their service delivery as on our industry.
  • Paul Mangion | 15 May 2012, 05:13 AM Agree 0
    Good. I wish they would start doing that in Ontario. If FSCO really wants to protect the consumer they should spend more time investigating the fraudulent agents and less time worrying about how your license number does not show on every page of your website. They won't be too hard to find since all the realtors know who they are.
  • Terry | 15 May 2012, 05:58 AM Agree 0
    Well, let's not just blame brokers because I personally know where banks themselves are pushing through the same type of deals. Just like, Banks seem to get deals pushed through the insurers when their credit is slow, as I hear they do get a Free Bee once in a while, so I think some Brokers get frustrated knowing this is going on !!!!
  • Irene | 16 May 2012, 01:15 AM Agree 0
    Does full disclosure apply to a property one owns under a corporation?
  • Bobby | 16 May 2012, 01:33 AM Agree 0
    This sort of behavior definitely doesn't belong in our industry! Its people like this that are greatly responsible for the departure of some lenders. The brokers name can be found on the BC FICOM website under 'Enforcement' and then 'Mortgage Brokers' for all to see.
  • anonymous | 17 May 2012, 03:20 AM Agree 0
    i know of a broker who was fined an excessive amount for giving a client a note loan to purchase a vehicle through an auction until his mortgage funded within 2 weeks which the note loan was paid back to the brokerage house. For that he was investigated and fined an excessive amount as apparantly he had a interest in the mortgage and the form 11 indicated he didn't,as well the broker was penalized for not disclosing a commercial apartment building owned by one of the clients holding companies?I wonder how many RESPECTABLE Mortgage professionals out there may be in the firing line? I think there is always 2 sides to any story as was the case with this guy.
  • Alberta | 17 May 2012, 05:08 AM Agree 0
    Anyone referring to this broker as 'Respectible' after reviewing the FICOM filing is clearly not respecable himself/herself! Have you read the FICOM investigation? He was cited with numerous violations, non-disclosures, missing and misleading information and so on. There may well be 2 sides to a story... but get real! You think the fine was excessive? I say it wasn't enough. Brokers are required to disclose anything and everything material to the lender and if we don't, we are simply doing a bad job. Our industry need to get rid of behaviors like this! Here in AB, we don't see enough of action like this. I commend this decision and I'm sad to see there are people that post defense of this behavior as somehow just being a broker put into the firing line... put into the firing line for unethical behavior.
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