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Mortgage Broker News | 02 Sep 2009, 12:00 AM Agree 0
A number of mortgage brokerages in the Greater Toronto Area are being audited by the federal privacy commissioner due to concerns over the security of client information, according to a report in the Globe and Mail.
  • Bryan Slaney | 04 Sep 2009, 03:30 AM Agree 0
    It is very irresponsible to say"there is tremendous fraud going on in the broker industry". I pride myself in my professional dealings with clients, respecting their rights and upholding the letter of the law. This article says I am fraudulent. There is fraud but my bet it is the minority that paints reponsible broker agents all the same and really hurts my chances of surviving as a vital business.
    Bryan Slaney AMP, B.A., M.Ed
    Slaney Mortgages/Invis Inc.
  • Donald Wilson | 04 Sep 2009, 03:34 AM Agree 0
    I am convinced that the mortgage brokerage industry is currently undergoing a major shift towards larger and more sophisticated brokerage companies, in part due to the increased costs associated with compliance with regulators and government oversight. The theoretical advantage of a small brokerage company is that the designated individual can have an extremely intimate knowledge of his brokers and their deals, on a case by case basis. Compliance is much simpler in some respects, but unfortunately it is clearly hit and miss.

    Some small brokers are extremely diligent and pay full attnetion to compliance issues. Many, I suspect, are finding it difficult to keep up with the many regulatory obligations while they operate as full time sub-brokers or agents at the same time as running the brokerage company.

    Larger company have a destinctive advantage in being able to afford a full time compliance person, and administration department to handle transaction records.

    Criminal use of credit information for identity theft, or other forms of fraud should always be top-of-mind for brokers who have access to Credit Information. It is one of the best arguments yet for maintaining electronic records only, with no paper to end up in the hands of fraudsters.

    It is necessary to have good security on your computer records, to prevent the same kind of invasion of privacy, but it certainly simpler than trying to manage paper records in a business that many brokers are doing from home or the back seat of their car.
  • GuardianAngel | 04 Sep 2009, 03:35 AM Agree 0
    As long as these fraudsters get away with their criminal activities, this issue won't go away. Why not put these people in jail for 10+ years, maybe they'll think twice. Its a disgrace to see these people walk free after so many are affected by their activities. Meanwhile the honest ones have to deal with the perception that all mortgage agents are crooks.
  • vittorio oliverio | 04 Sep 2009, 04:29 AM Agree 0
    when I hear people stating that their is lots of fraud in the broker division should have his head examined. let's see as a broker, I take my education seriously and because I do I make sure my group does the same. as per broker owner, we have people in our office that review files and make sure that procedure is followed. when new changes are made we implement and make sure that everything is working better than the minumal requirement.
  • vittorio oliverio | 04 Sep 2009, 04:36 AM Agree 0
    When new changes are made we implement and make sure that everything is working better than the minimal requirements that are asked of us. Brokers that care about the industry do more than banks ever did to protect clients information. I know that as broker we made many suggestion to improve the privacy of clients, these suggest were made to the higher up and they felt they were to strict. broker work hard to make sure that all aspects of clients information is protected. if you look at all the frauds in Canada I would be very surprised if more than 1% comes from brokers. the only difference is when we make a mistake everybody knows about. when others make mistakes they are hidden so nobody knows about it
  • Donna | 04 Sep 2009, 05:47 AM Agree 0
    I have been in the financial Services Industry since 1980 and have seen it all. Unfortunatley now what I see is the employees of Brokers that go home and discuss business with there significant others. I gained a client due to a employees husband of another brokerage approaching this client at her place of work and asked "Did you get your Mortgage Funded?".
  • Larry Rachlin | 04 Sep 2009, 06:10 AM Agree 0
    I have long believed that the Devil would be found amoung the large numbers of agents working under the Invis, Mortgage Intelligence & Mortgage Alliance banners. How is it possible that one broker of record can be expected to supervise hundreds of agents? In Ontario, FSCO made a grievious error in permitting and expecting compliance by allowing these brokerage houses to take on such vast numbers of agents while expecting compliance.
    Larry Rachlin,BA,CMP
    Broker of Record
    Mortgages Unlimited
  • Frustrated Broker | 04 Sep 2009, 06:49 AM Agree 0
    Nothing like putting up a nice big soundbite that can be taken out of context, or used by the media like this. Way to go! Thanks for pushing the industry back another 10 years in the public's eyes!

    Give your head a shake. The only way you would know if mortgage fraud was "rampant" in our industry would be if it is "rampant" in your own company. Don't insult the brokers and agents you are supposed to represent!
  • Thanks | 04 Sep 2009, 08:50 AM Agree 0
    What a horrible thing to say. In ANY industry or profession, fraud is going to be there. But it is only a small handful of people that are doing it that wreck it for everyone. Let's just hope what Alex has said doesn't get out too far.
  • Brad Currie | 04 Sep 2009, 09:18 AM Agree 0
    What a golden opportunity for CAAMP to step up to the plate and position itself with public on this issue. Has there been any discipinary actions against CAAMP members? Either way, CAAMP seems to want to position itself as the a standard above. Here is the opportunity. Turf those who commit fraud from membership, deny those who have been involved in fraud then membership has some value. At this point CAAMP is simply an expense to brokers with a promise to increase public awareness that would take the advertising budget of NIKE to achieve.
  • Issiberna | 04 Sep 2009, 09:26 AM Agree 0
    There are a lot of honest, hard working Brokers and Agents out there. It's sad that there are some Brokers that loose focus,get lost in the whole deal by scamming and then it catches up with them. What goes around comes back around. These types of Brokers should take a few steps back before they decide and start to scam. Once they are caught they throw away their reputation, all the education, certification etc, they put shame on themselves, their families and friends. Criminal activity = Criminal record.
  • NotSoFrustratedBroker | 04 Sep 2009, 10:09 AM Agree 0
    As a mortgage broker with some sense of integrity, I also took exception to Alex Haditaghi's comments, but having some experience with the media, I emailed a representative of The answer.....Alex was misquoted. What a surprise!
  • Not Convinced | 04 Sep 2009, 11:29 PM Agree 0
    I find it hard to believe that the leading newspaper in Canada entirely misquoted someone. If that's the case though, wonder what the original quote was? Surely something equally as damaging.
  • Zeena Izmeth, AMP | 05 Sep 2009, 12:12 AM Agree 0
    I left a full-time job to become self-employed and be part of a professional group that complies with strong ethics and integrity in the financial business. No doubt in every profession there might be a handful of people who will deviate from doing the right thing, but it is not appropriate for Alex Haditaghi to state a very general remark that there is "tremendous fraud going on in the broker industry," I believe with the regulations of FSCO and CAAMP out there policing the work of the Mortgage Brokers, if anyone is caught doing fraudulent work then there are tremendous repercussions to their brokerage. They obviously must be stripped off their licenses so that it will protect those who conduct their business in an ethical way. How can anyone expect the Broker profession to survive in this competitive industry when the media tries to harm our reputation.
  • Warren Kanagaratnam | 07 Sep 2009, 06:19 AM Agree 0
    It is very disturbing to know that there are agents who indulge in these activities. When agents are mandatory to complete "Ethics" as a subject, they should practice what they studied.
    Agents who involved in these illegal activities should be published and punished for life. They shouldn't be allowed to practice as mortgage agents and their brokers also should be warned.
    I think, its advisable to increase the qualifications needed to become a qualified agent.When the agents are required to study more subjects to become an agent, they will feel the responsibility and will not embark in bad practices.
    The authorities responsible for the mortgage industry should take care of these, like FSCO, CAAAMP, IMBA, etc.
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