Mortgage broker fined $20,000 after disclosure errors

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Submortgage broker Alan James Fetterly, registered with VERICO Compass Mortgage Group Corporation, has been fined $20,000 plus $8,370.38 in investigative costs after failing to make proper disclosure to lenders and borrowers.

Fetterly has been registered as a submortgage broker since 2017. Fetterly failed to provide timely Form 10 Conflict of Interest and Disclosure Statements and Form 9 Investor/Lender Information Statements to lenders and borrowers in respect of three mortgage applications in 2022 and 2023. These forms support informed decision making by all parties.

In one mortgage application, the Form 10 did not disclose that Fetterly was related to one of the co-lenders. Additionally, the Form 9 did not disclose a party’s beneficial ownership of the property being financed.

In the other two mortgage applications, the forms were provided late, after the mortgage had already been funded. Fetterly claims this was due to administrative oversight.

None of the borrowers or lenders suffered any financial loss as a result of the late or incomplete disclosures.

“Mortgage brokers are held to a high standard for disclosures for a reason,” said Jon Vandall, Senior Vice President, Financial Professionals at BCFSA. “It’s vitally important that parties are aware of key required information so that they can make informed decisions. This broker didn’t live up to that standard.”

The Mortgage Services Act, which comes into effect on October 13, 2026, will bring in new and enhanced requirements for disclosures, which will support better informed decisions for consumers and lenders.