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BC Financial Services Authority has taken enforcement action against mortgage broker Chi Young (Norris) Yu, suspending his registration and prohibiting him from reapplying as a submortgage broker for 14 months for conducting business in a manner prejudicial to the public interest, contrary to the provisions of the Mortgage Brokers Act.
In relation to three separate mortgage applications respecting two sets of borrowers submitted between 2016 and 2017, Yu admitted to BCFSA’s investigative findings that he provided misleading information to lenders when he:
- failed to disclose that borrowers were seeking concurrent financing for the purchase of another property;
- stated that a property would be owner-occupied when he knew it would not be; and
- submitted false residential tenancy agreements as if they were genuine.
Providing misleading information of the type that Yu has admitted to puts the public and market integrity at risk and undermines public confidence in the mortgage industry. Misleading mortgage applications increases the likelihood that borrowers will enter into mortgages they cannot in fact afford and puts lenders at risk of making loans they would not have otherwise made.
BCFSA reminds all mortgage brokers that they have a duty to protect their client and uphold the regulatory framework. While the role of the mortgage broker must be to promote the interests of their clients, the promotion of that interest cannot be allowed to take place at the detriment of the public market as a whole.
In addition to his suspension, Yu was ordered to pay investigation and hearing costs in the amount of $18,000.
- Decision on Penalty and Cost – Chi Young (Norris) Yu
- Report a Concern with BCFSA
- Find a mortgage broker