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Mortgage Broker News | 05 Nov 2018, 12:24 AM Agree 0
A couple of mortgage brokers refused to answer’s questions
  • Rachelle Berube | 05 Nov 2018, 10:35 AM Agree 0
    I did some research into Fortress and found that some of their projects had 306% loan to value mortgages taken out on their properties the date of purchase. I also met with a BDMC salesman called Carl Steritt. I was told I could get an appraisal, and everything was secured by a mortgage. Fortress used Letters of Opinion issued by a appraiser stating what the property was worth after it was built up not a current appraisal, but this was meant to confuse investors who would think it was a legit actual appraisal as it was issued by an appraiser on their letterhead. Once you were in their sales channel they would arrange for you to meet their professionals to do your due diligence. Mortgage brokers were paid lucrative 10% commissions to sell Fortress products. Bottom line is mortgage brokers had easy access to check the sales price and existing mortgages
  • Ron Butler | 05 Nov 2018, 11:08 AM Agree 0
    You don't know whether to laugh or cry when you read some of this. A duly registered mortgage agent in the province of Ontario refers a compliant about a mortgage she clearly arranged or recommended to Fortress? Like she is not involved?

    So no due diligence, no follow-up, no level of responsibility whatsoever, just: Call Fortress. This is what is wrong with the Regulator in Ontario. Every single one of the mortgage agents, brokers, brokerages and Principal Brokers of those organizations who sold Fortress products or referred clients to Fortress and received payment for same should ALL be under investigation and really should be suspended from operations during the investigation.
  • Michele Hall | 05 Nov 2018, 11:26 AM Agree 0
    For the investor that was in the mortgage industry , you could not have been experienced in mortgages. I read the prospectus supplied to me by my private investors, I could see the risks, and that their investment was going into soft costs of projects . I advised them that at their stage in life this was way too risky . As for the police officers that is terrible to take away their retirement as well . Investors should always always always have their lawyer review any investment. A good broker will send the package to the lawyer.
    • Ron Butler | 05 Nov 2018, 12:41 PM Agree 0
      Michelle, Fortress did an end run around your perfectly logical suggestion to show the deal to a lawyer. Fortress told every investor that they would see an independent lawyer to sign the docs but what they didn't tell the investor was that because Fortress PAID that independent lawyer the ILR was false so the clients ended up with zero case against the so call independent lawyer and the Law Society. Pure fraud from start to finish.
  • Devastated Customer | 05 Nov 2018, 03:02 PM Agree 0
    We too have invested over $215,000 with Fortress since June 2012. The project should have been completed April 2016. I have been checking with Fortress (now bankrupt)and Faan Mortgage in Toronto. Still nothing! No one has answers. WE were told we would be issued a T5 slip to show we received RRIF money from the trust company (even though no money will be given to us)and we have to claim we received the money when we file our taxes. What nonsense -that`s fraud!!! We do not know what will happen as we really need that money since we are retired. Someone help us, please!!
    • Saddest person in the world | 06 Nov 2018, 03:23 PM Agree 0
      I'm on the same boat but deeper hole!!! I'm reaching out to so many people, can't hear back from anyone! It's like no one cares!!! I feel hopeless!!! Share your email, I will contact you.
  • answer guy | 06 Nov 2018, 01:11 AM Agree 0
    all your eggs in one basket?
    sounds like gambling to me
    • Ron Butler | 07 Nov 2018, 11:19 AM Agree 0
      Not completely fair, yes, people need to be ultra careful once they go outside mainstream investing but this was sold as a debt instrument like a bond and the promoters always mentioned the sales people held government licenses and independent lawyers would also provide individualized, learned opinions on the mortgage investments and the lawyers did in fact do that. This was way beyond and Rah-Rah Pyramid sales madness this was well organised fraud.
  • Saddest Person In the World | 06 Nov 2018, 03:20 PM Agree 0
    I was fooled into this scam, me and my partner invested $500k into this scam because we were assured this was a safe investment! We investors need to unite and see if we have any rights against these frauds!! Let's build a group of defaulted investors!!
  • Matt | 07 Nov 2018, 07:30 AM Agree 0
    The worst part of this is that the receiver (faan) will have priorities for their fees before any investors. Expect to lose 30 to 50% in any recovered dollars to them prior to seeing any money.

    • Ron Butler | 07 Nov 2018, 11:13 AM Agree 0
      Oh no, this will be a total loss for investors. Zero cents on the dollar.
  • Carole | 08 Nov 2018, 09:18 AM Agree 0
    We first heard of Fortress when a respected Ottawa Real Estate group endorsed their projects and invited Jawad Rathmore as a speaker to one of their Investment Seminars. Given that this Real Estate group is well known and respected, plus personal assurances from Mr. Rathmore that the Capital Pointe project in Regina was safe and secure due to their in-depth planning and research, in addition to their successful track record, we felt that investing in a syndicated mortgage met our low risk criteria for investments. That was back in 2011 and as of today the project is no further along than a hole in the ground. After years of mis-information and deception from the brokers we fear that once everything is said and done we will lose our $100k investment. In addition to the financial loss there's the ongoing anxiety associated with continually trying to get realistic status information on our investment.
  • Michele Hall | 12 Nov 2018, 01:28 PM Agree 0
    Ron, why would you not enlist your lawyer to review everything before you invest . If you work with a lawyer supplied by Fortress that should be your first red flag. I feel awful for the investors who lost everything. However did anyone seek legal advise outside of the Fortress group ? Not the lawyer supplied by them ?
    • El Bastardo | 13 Nov 2018, 09:21 AM Agree 0
      Part of the tactic was to convey to you that there was independent legal advice. Why would retail investors assume they are required to seek out their own legal counsel on investment products? You don't do this with conventional products (mutual funds, equities, etc). The way it was marketed to retail investors primarily was to show you that there was a pseudo due diligence and that they 'looked out for your best interests'. I know because I interviewed several brokers that marketed this stuff. It was all smoke and mirrors with meaningless and distorted comparisons to other investment products. The brokers were trained to provide comparisons to equity markets (e.g, TSX primarily...that is a few key sectors with more volatility than the S&P for example), to these 'fixed rate safe returns of 8% with security'...and none understood that there was no volatility with these products because guess what? There was no secondary market. No pricing = no volatility. The argument made by these brokers on several occasions was that: why pay for costly legal expenses when the borrower covers the costs? Of course you will not pay for legal expenses. You don't for others, so why this one? Especially since it was marketed as a conventional retail investment product....through registered accounts on top of it.
  • Feel so violated | 14 Nov 2018, 08:28 PM Agree 0
    If you have lost money please join Facebook group "Investors" of Fortress development
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