In the second such case uncovered in as many months, an unregistered mortgage broker tagged with a prior industry alert has allegedly set up loans alongside registered brokers, BC authorities reported.
Unregistered broker Dean Frank James Walford was found to have set up mortgages with registered sub-mortgage brokers Grant Brian Curtis and Tanya Ann Smith, according to British Columbia’s Registrar of Mortgage Brokers.
FICOM acting registrar Chris Carter said late last week that the agency has issued a notice of hearing to Walford. Curtis and Smith have also been issued similar notices.
Along with former registered lender Loan Depot Canada, Walford submitted 90 mortgage applications to lenders on behalf of BC borrowers. The notices served to Curtis and Smith did not specify how many mortgages they handled.
In addition, Walford is accused of submitting inauthentic documents that “resulted in economic loss to the lender.”
“Unregistered mortgage brokers place consumers at risk, including the possible misuse of their personal information. Registered mortgage brokers who enable this activity undermine public confidence in the mortgage broker industry,” according to a FICOM press release, as quoted by Glacier Media.
“If proven, individuals conducting or facilitating unregistered mortgage broker business can receive administrative sanctions, which may include financial penalties up to a maximum of $50,000 plus investigation and hearing costs.”
Carter noted that aside from the industry alert issued in 2014, Walford also has a cease and desist order to his name. The latter was due to his acting in an unregistered capacity in BC with Canada Loan Depot in 2011.