[AppraiserChat.com] London Free Press Allegations against mortgage brokerage shine harsh spotlight on sector

[Higrader]

Hey Mike
hope all is well with you.
I've been busy... just got back from our 2nd trip to TO for Velma... eye
operation yesterday at Toronto Western Hosp
Will be there again in 3 weeks for follow up examination
d


On Thu, May 23, 2024 at 9:08 AM Michael A. Roman <maroman at ihac.com> wrote:

> Hi ,
>
>
> https://lfpress.com/news/local-news/allegations-against-london-mortgage-brokerage-shine-spotlight-on-sector
>
>
> > Allegations against mortgage brokerage shine harsh spotlight on sector
> >
> > A regulatory agency’s allegations of wrongdoing by a well
> > established London mortgage brokerage raise larger questions about
> > the sector, an industry expert says.
> > Author of the article:
> > Heather Rivers
> > Published May 21, 2024  •  Last updated 13 hours ago  •  7 minute read
> > Join the conversation
> > Illustration of a mortgage broker
> > (Getty Images)
> > Article content
> >
> > A regulatory agency’s allegations of wrongdoing by a well
> > established London mortgage brokerage raise larger questions about
> > the industry, including how many other mortgages arranged by the
> > company may have allegedly been compromised, an industry expert says.
> >
> > “If it’s true, it’s hard to believe it’s a one-off,” says Cameron
> > Field, a former Toronto police officer and vice-president with the
> > Vidocq Group, a consulting firm that helps companies manage risk,
> including financial crime risk.
> > Advertisement 2
> > Story continues below
> > This advertisement has not loaded yet, but your article continues below.
> >
> > The Financial Services Regulatory Authority of Ontario (FSRA) said
> > in a news release on May 7 it has started enforcement action against
> > Forest City Funding Inc. and its principal broker William Handsaeme
> > following a two-year investigation.
> >
> > The authority said Forest City Funding, a London mortgage
> > brokerage, gave “false or deceptive information and documents when
> > dealing in mortgages,” contrary to the the Mortgage Brokerages, Lenders
> and Administrators Act.
> >
> > The company also is alleged to have acted “when it ought to have
> > known that by acting it was being used by a borrower to facilitate
> dishonesty,” the authority said.
> >
> > Handsaeme, identified by the authority as principal broker and sole
> > director of Forest City Funding, is alleged to have caused the
> > company to engage in the conduct the authority says violated the act.
> >
> > The authority is proposing fines of $100,000 against Forest City
> > Funding and $10,000 against Handsaeme, who also faces a possible
> > one-year suspension of his mortgage broker licence. The authority’s
> allegations have not been proven.
> >
> > Forest City Funding brokered 5,739 mortgages in 2022 worth more
> > than $2 billion, the authority said. The company at 1 Commissioners
> > Rd. East in London has been licensed since 2008.
> > Advertisement 3
> > Story continues below
> > This advertisement has not loaded yet, but your article continues below.
> > Article content
> >
> > The company sponsored nearly 350 full-time mortgage brokers and agents.
> >
> > The authority detailed the findings of its investigation in a
> > notice of proposal dated Feb 9, 2024.
> >
> > The authority said it reviewed five transactions in which Forest
> > City Funding arranged the first mortgage and a company called
> > Solidity Group was the lender for the second mortgage.
> >
> > In four of the five transactions, the authority said, the second
> > mortgage was used to pay back supposedly “gifted” down payments, a
> > contravention of the terms of the first mortgage commitments.
> >
> > Bill Handsaeme
> > Bill Handsaeme (Facebook)
> >
> > The allegations against Forest City Funding and Handsaeme have
> > caused a stir in the mortgage industry. An insider said Forest City
> > Funding is one of the largest brokerages in Canada and Handsaeme is
> > a well-known mortgage broker with more than three decades of experience.
> >
> > The alleged violations by Forest City Funding “are a really good
> > snapshot of a growing and large fraud trend in Canada and that is
> mortgage fraud,” Field said.
> >
> > The alleged financial dishonesty raises big questions about any
> > previous dealings Handsaeme has been involved in, he said.
>
>
>
> Michael Roman
>
>
>
>
>
>
> *-- Michael A. Roman, CRA,P.App,FRI,PLE,CRF, Senior Appraiser INHOUSE
> APPRAISAL CORPORATION Real Estate Appraisal & Consultants 33 Ivan Road,
> Toronto, Ontario, Canada M1C 1V1 Phone: 416-282-4111 E-mail: *
> maroman at ihac.com
> *Web Site:   *IHAC.com <http://ihac.com>*   or   *INHOUSEappraisal.com
>
>
> *Copyright (c) 2024 Michael A. Roman - ALL RIGHTS RESERVED
> ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ P Save
> Paper - Think before you Print *
> ===============================
> Web Site:
> AppraiserChat.com
> Forum mailing list to send a message to the group:
> Forum at AppraiserChat.com
> Forum Members Control Panel:
> http://AppraiserChat.com/mailman/listinfo/forum_AppraiserChat.com
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://appraiserchat.com/pipermail/forum_appraiserchat.com/attachments/20240524/38a70b65/attachment.html>