<html><head><title>London Free Press Allegations against mortgage brokerage shine harsh spotlight on sector</title>
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<span style=" font-family:'arial'; font-size: 10pt;">Hi ,<br>
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</span><a href="https://lfpress.com/news/local-news/allegations-against-london-mortgage-brokerage-shine-spotlight-on-sector">https://lfpress.com/news/local-news/allegations-against-london-mortgage-brokerage-shine-spotlight-on-sector</a><br>
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> Allegations against mortgage brokerage shine harsh spotlight on sector<br>
><br>
> A regulatory agency’s allegations of wrongdoing by a well<br>
> established London mortgage brokerage raise larger questions about<br>
> the sector, an industry expert says.<br>
> Author of the article:<br>
> Heather Rivers<br>
> Published May 21, 2024 • Last updated 13 hours ago • 7 minute read<br>
> Join the conversation<br>
> Illustration of a mortgage broker<br>
> (Getty Images)<br>
> Article content<br>
><br>
> A regulatory agency’s allegations of wrongdoing by a well<br>
> established London mortgage brokerage raise larger questions about<br>
> the industry, including how many other mortgages arranged by the<br>
> company may have allegedly been compromised, an industry expert says.<br>
><br>
> “If it’s true, it’s hard to believe it’s a one-off,” says Cameron<br>
> Field, a former Toronto police officer and vice-president with the<br>
> Vidocq Group, a consulting firm that helps companies manage risk, including financial crime risk.<br>
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><br>
> The Financial Services Regulatory Authority of Ontario (FSRA) said<br>
> in a news release on May 7 it has started enforcement action against<br>
> Forest City Funding Inc. and its principal broker William Handsaeme<br>
> following a two-year investigation.<br>
><br>
> The authority said Forest City Funding, a London mortgage<br>
> brokerage, gave “false or deceptive information and documents when<br>
> dealing in mortgages,” contrary to the the Mortgage Brokerages, Lenders and Administrators Act.<br>
><br>
> The company also is alleged to have acted “when it ought to have<br>
> known that by acting it was being used by a borrower to facilitate dishonesty,” the authority said.<br>
><br>
> Handsaeme, identified by the authority as principal broker and sole<br>
> director of Forest City Funding, is alleged to have caused the<br>
> company to engage in the conduct the authority says violated the act.<br>
><br>
> The authority is proposing fines of $100,000 against Forest City<br>
> Funding and $10,000 against Handsaeme, who also faces a possible<br>
> one-year suspension of his mortgage broker licence. The authority’s allegations have not been proven.<br>
><br>
> Forest City Funding brokered 5,739 mortgages in 2022 worth more<br>
> than $2 billion, the authority said. The company at 1 Commissioners<br>
> Rd. East in London has been licensed since 2008.<br>
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><br>
> The company sponsored nearly 350 full-time mortgage brokers and agents.<br>
><br>
> The authority detailed the findings of its investigation in a<br>
> notice of proposal dated Feb 9, 2024.<br>
><br>
> The authority said it reviewed five transactions in which Forest<br>
> City Funding arranged the first mortgage and a company called<br>
> Solidity Group was the lender for the second mortgage.<br>
><br>
> In four of the five transactions, the authority said, the second<br>
> mortgage was used to pay back supposedly “gifted” down payments, a<br>
> contravention of the terms of the first mortgage commitments.<br>
><br>
> Bill Handsaeme<br>
> Bill Handsaeme (Facebook)<br>
><br>
> The allegations against Forest City Funding and Handsaeme have<br>
> caused a stir in the mortgage industry. An insider said Forest City<br>
> Funding is one of the largest brokerages in Canada and Handsaeme is<br>
> a well-known mortgage broker with more than three decades of experience.<br>
><br>
> The alleged violations by Forest City Funding “are a really good<br>
> snapshot of a growing and large fraud trend in Canada and that is mortgage fraud,” Field said.<br>
><br>
> The alleged financial dishonesty raises big questions about any<br>
> previous dealings Handsaeme has been involved in, he said.<br>
<br>
<br>
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<span style=" font-family:'arial'; font-size: 10pt;">Michael Roman<br>
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