B.C. regulator fines mortgage broker $66K over failure to share complete financial information
A B.C. mortgage broker has been ordered to pay nearly $66,000 to a provincial regulator for misconduct.
In a decision issued late last month and posted online last week, the BC Financial Services Authority imposed the penalty on mortgage broker John Hawkins Anderson. A previous decision finding that Anderson had committed conduct "prejudicial to the public interest" was issued in August.
The misconduct in question occurred in 2020 and involved four mortgage applications Anderson submitted that failed to disclose some of the financial liabilities of the prospective borrowers.
On two of the applications, he also failed to verify the accuracy of the borrowers' information.
Summarizing Anderson's offences in his decision on penalties, BCFSA hearing officer Andrew Pendray described the mortgage broker as telling investigators the information he omitted "didn't matter" and "wouldn't have affected anything, anyway."
"Mr. Anderson appears to have concluded that it was open to him to determine what financial liability he was required to provide to a prospective lender, and what financial liability information could be left out," Pendray's decision reads.
"That conclusion is not one that is conducive to the efficient operation of the mortgage marketplace, nor is it one that, if allowed to continue in the industry, will allow for the protection of the public as a whole. While it is true that there was not, in this case, any significant harm or financial loss to the public, the risk of such a loss occurring is, in my view, readily apparent if such an attitude on the part of a registrant were allowed to stand unchecked by the regulator."
The hearing officer concluded that Anderson's actions "created a significant risk of adverse outcomes" for both the mortgage applicants he represented – who may not have been able to afford their payments – and the mortgage lenders, who could have funded mortgages based on incorrect information.
"I find Mr. Anderson’s apparent views in this regard to be incorrect on their face, and to be contrary to the overarching goal of the mortgage regulatory system, that being the protection of the public," the decision reads. "In my view, it is clear that specific deterrence is required in order to ensure that Mr. Anderson’s views in this regard be put to rest."
To that end, Pendray determined that a fine "at the maximum end" of the BCFSA's scale would be appropriate. He ordered Anderson to pay a $50,000 penalty, which was the amount requested by investigators.
Pendray also ordered Anderson to pay for the cost of the investigation into his conduct, though the hearing officer did not grant investigators all of the costs they were seeking.
Though they had "substantial success," investigators did not prove all of the allegations they brought against Anderson, Pendray noted, adding that some of the expenses investigators had claimed were for matters that were not, ultimately, brought to a hearing.
Instead of the $18,137.05 in costs investigators were seeking, Pendray ordered Anderson to pay $15,987.05, bringing the total the broker must pay the BCFSA to $65,987.05.
CTVNews.ca Top Stories
Doctors concerned about potential spread of bird flu in Canada
H5N1 or avian flu has been detected at dozens of US dairy farms and Canadian experts are urging surveillance on our side of the border too.
There's a limit to how much interest rates in Canada and U.S. can diverge: Macklem
Bank of Canada governor Tiff Macklem says Canadian interest rates don't have to match U.S. or global rates, but there is a limit to how much they can diverge.
Prince William and Kate release photo of daughter Charlotte to mark ninth birthday
Prince William and his wife Kate released a picture of their daughter Charlotte to mark the princess's ninth birthday on Thursday.
This Canadian restaurant just lowered its prices. Here's how it did it
A Canadian restaurant lowered its prices this week, and though news of price tags dropping rather than climbing sounds unusual, the business strategy in this case is not, according to experts in the field.
Should I invest with a human or a robot? Traditional firms vs. robo-advisors
Investors considering where to park their money have a choice: go with a traditional financial adviser or trust in an algorithm. Here are the pros and cons of both.
Five human skeletons, missing hands and feet, found outside house of Nazi leader Hermann Goring
Archeologists have unearthed the skeletons of five people, missing their hands and feet, at a former Nazi military base in Poland.
As Hamas considers ceasefire, question hangs: Will Israel end war without the group's destruction?
Hamas on Thursday was considering the latest proposal for a ceasefire with Israel that the United States and other mediators hope will avert an Israeli attack on the Gaza town of Rafah.
Imagine living in a 4-foot body that doesn't develop chronic diseases
Nathaly Paola Castro Torres has a rare disorder called Laron syndrome that is caused by a genetic mutation. It stunts her growth but also provides a hidden silver lining: Her body is protected from chronic diseases such as cancer that often take life away long before old age.
Concerns about Plexiglas prompt inspections at some Loblaws locations in Ottawa
Inspections are underway at more than one Loblaws location in Ottawa after complaints were filed about tall Plexiglas barriers.