Following a FSCO warning about unlicensed individuals who advertise mortgages on posters throughout the Greater Toronto Area, one broker is calling on his peers to report them to the regulatory commission.
"We as a broker community need to step up and report these signs to FSCO immediately," GTA-based broker, Deepak Bansal wrote on MortgageBrokerNews.ca. "In my opinion, these signs are not professional and are creating a bad image for our industry."
An unlicensed individual is soliciting mortgages in one major city through the use of posters.
“The Financial Services Commission of Ontario (FSCO) is warning consumers that the entity 2nd Mortgages is not licensed to do mortgage brokering business in Ontario,” FSCO wrote in an official release.
The person or persons purporting soliciting mortgages states, on posters placed throughout Brampton, Ontario, that the company offers home equity loans for borrowers with bad or good credit. They also list a phone number.
“Consumers should exercise caution if they are contacted by anyone from these coordinates,” the release from FSCO states. “If consumers arrange a mortgage from a mortgage brokerage, broker or agent that is not licensed in the province, they are not protected under the Mortgage Brokerages, Lenders and Administrators Act, 2006 which holds Ontario’s mortgage brokerages, administrators, brokers and agents to specific standards.”