FSRA takes enforcement action against Masoud Asnafi and Approved Mortgage Brokers
The Financial Services Regulatory Authority of Ontario (FSRA) has refused to renew the mortgage broker licence of Masoud Asnafi (Asnafi) and imposed administrative monetary penalties in the total amount of $95,000 on him and $10,000 on Approved Mortgage Brokers (AMB) an unlicensed entity controlled by Asnafi.
“FSRA will not hesitate to take action when licensees threaten the integrity of the mortgage application process,” said Elissa Sinha, Director of Litigation and Enforcement at FSRA.
“The Tribunal’s decision confirms that mortgage brokers and agents cannot provide false information in support of mortgage application and must take reasonable steps to ensure that the information they provide to lenders is accurate.”
After a contested hearing, the Financial Services Tribunal (Tribunal) held that Asnafi submitted false information in 18 mortgage applications, including bank statements, business registrations, and tax documents, contrary to section 45(2) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act).
The Tribunal found that mortgage brokers have an active obligation to take steps to ensure both lenders and borrowers are protected in a transaction, even when false information is provided by a borrower to obtain a mortgage.
Facilitating a mortgage transaction based on false information exposes lenders to financial risks and puts the borrower at risk of losing their property if their payments become unaffordable due to change in circumstances.
The Tribunal also found that Asnafi and AMB falsely represented AMB as a mortgage brokerage, contrary to section 11 of the Act and section 9 of Ontario Regulation 187/08.
FSRA issued these orders as a result of the decision of the Financial Services Tribunal in Asnafi, et al v. Ontario (CEO of FSRA), 2026 ONFST 9.
Learn more:
Access our enforcement database to see how FSRA is working to protect consumers through its monitoring and enforcement activities.
For media inquiries:
Russ Courtney
Senior Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]