Ever since the Real Estate Council of Ontario froze the accounts of three real estate brokerages, I've been keeping an eye on their website for any new developments. Fortunately there's nothing new to report on the real estate side of the business but it looks like the mortgage brokerage industry is having a few problems of their own. The following advisory was published on RECO's website yesterday:
The Financial Services Commission of Ontario (FSCO) regulates the mortgage brokering industry in Ontario. FSCO recently issued Interim Orders to suspend the licences of 79 mortgage brokerages for not having errors and omissions insurance coverage.
Along with the Interim Orders, these mortgage brokerages were served with Notices of Proposal to revoke their licences and impose an administrative monetary penalty of $1000 for not meeting this requirement. When a mortgage brokerage's licence is suspended, neither the brokerage nor its brokers and agents can conduct mortgage business in Ontario.
Any home buyer who is currently working with a mortgage broker should ensure that their broker is not one of the 79 suspended by FSCO. You can see a complete list of suspended mortgage brokerages on FSCO's website.
February 24, 2009Market |