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BCFSA Issues Penalties for Unregistered Mortgage Broker Activity
BC Financial Services Authority (“BCFSA”) disciplined registered mortgage broker Sonja Marie Andersen for facilitating the unregistered mortgage broker activity of Fred Nielsen, who has also been disciplined for conducting business as a mortgage broker or submortgage broker without being registered to do so under the Mortgage Brokers Act.
Between September 2018 to June 2019, Andersen accepted personal information, completed mortgage applications, and borrowers’ income-supporting documents through the unregistered Nielsen, rather than dealing directly with the borrowers. Certain key documents were later identified to have been improperly altered, and Andersen failed to conduct due diligence to verify the accuracy of documents before forwarding them to lenders.
Nielsen collected up to $18,000 in fees from borrowers and portrayed himself as a mortgage broker. He arranged mortgages directly with the borrowers and forwarded mortgage applications to Andersen, which included false income documents that inflated borrowers’ annual income significantly.
Sonja Andersen has been ordered to pay:
- $45,000 penalty, and
- Is required to spend 24 months under the direct supervision of the Designated Individual or an appointed registered submortgage broker at the brokerage, who will review and sign off on all mortgage applications involving Anderson.
Fred Nielsen has been ordered to pay:
- $45,000 penalty, and
- $15,000 investigative costs.
BCFSA reminds registered mortgage and submortgage brokers that it will strictly enforce its due diligence expectations, and that aiding an individual’s unregistered brokering activities is illegal and may lead to enforcement proceedings. Additionally, consumers and registered submortgage brokers can Report a Concern with BCFSA or use our Anonymous Tipline if you are aware of any unregistered brokering activities.
Consent Order – Sonja Marie Andersen
Consent Order – Frederick Jonathon Nielsen
BC Financial Services Authority (“BCFSA”) is a Crown regulatory agency of the Government of British Columbia. BCFSA oversees the financial services sector which includes pension plans, mortgage brokers, real estate services, real estate development marketing, and financial institutions (credit unions and insurance and trust companies). BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”).
Communications Manager, (778) 783-4057, [email protected]