Deterring Fraud in Ontario’s Mortgage Brokering Sector
FSRA launches additional consultations on proposed guidance
The Financial Services Regulatory Authority of Ontario (FSRA) is holding additional consultations on guidance that describes requirements for FSRA-licensed mortgage brokers, agents, brokerages and administrators to deter deceptive and fraudulent practices in the mortgage brokering sector.
“During these times of high inflation and rising interest rates we need to do everything we can to protect individuals and families from becoming victims of fraud,” said Huston Loke, Executive Vice President, Market Conduct. “With the valuable input of our stakeholders, we have strengthened our proposed guidance on detecting and preventing mortgage fraud and we look forward to hearing more from the public on this important initiative.”
As a result of feedback received from stakeholders during the December 2021 public consultation, FSRA is proposing changes to the proposed guidance. These changes include additional content on:
- Addressing the duty to verify documents and identities
- Ensuring appropriate anti-fraud policies, procedures and training are in place and updated regularly
- Clarifying the role of principal brokers at brokerages and principal representatives at administrators in preventing and detecting fraud
FSRA may take enforcement action against licensed mortgage brokers, agents, brokerages and administrators if it receives credible information about potential fraud or failure to comply with the law and its regulations.
FSRA has authority to regulate and sanction licensed mortgage brokerages, brokers, agents and administrators. When fraud involves more than FSRA-licensed persons or businesses, FSRA works with the appropriate law enforcement agencies with jurisdiction over those other persons or businesses.
To review the proposed guidance and submit your feedback, please visit FSRA’s website. The consultation period is now open and will close on April 26, 2023.
- Consultation on proposed guidance on Detecting and Preventing Mortgage Fraud
- Summary of stakeholder feedback from December 2021 public consultation
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.