Printed . This content is updated regularly, please refer back to https://bcfsa.ca to ensure that you are relying on the most up-to-date resources.
Last week, CBC Marketplace aired a national investigation into allegations of mortgage fraud across Canada in particular noting activities in Ontario and British Columbia. BCFSA is extremely concerned about the conduct exhibited in the program.
As the regulator for mortgage brokers in British Columbia, BCFSA holds registered individuals to the highest standards of licensing and education. Any mortgage broker suspected to be facilitating criminal activity will be reported to the police and will also be subject to BCFSA’s disciplinary processes which can result in fines up to $50,000 or more serious consequences, including suspending or cancelling registration. BCFSA publishes all disciplinary and hearing decisions, orders, and notices on its Public Protection webpage, including numerous pending enforcement actions against registered mortgage brokers.
Through the new Mortgage Services Act recently announced by B.C.’s Ministry of Finance, BCFSA will be better equipped to pursue and discipline bad actors in the sector with rule-making capability and greater powers to investigate and discipline unlicensed individuals. Fines will be increasing as well as BCFSA’s ability to pursue those who are bringing the mortgage broker business into disrepute. BCFSA continues to share information with its partner agencies and regulators, and report criminal activity to law enforcement entities for prosecution.
Safeguarding the public interest is paramount for BCFSA. Mortgage fraud places consumers at risk of being placed into mortgages they can’t afford, misleading lenders into making risky loans they otherwise would not have made with accurate information, while also undermining the integrity of the financial services and mortgage broker sector.
Mortgage brokers and real estate licensees have a responsibility to report suspected misconduct. Fraud, money laundering, and activities like those reported by CBC, will be prosecuted to the fullest extent of the law.
BCFSA encourages consumers to Report a Concern, anonymously or by filing a report online.
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”).