Regulator says Ontario-based brokerage committed multiple violations of the Mortgage Brokerages, Lenders and Administrators Act
The Financial Services Regulatory Authority of Ontario (FSRA) has initiated enforcement action against Preeti Amin, Raaj Vikash Kalwaney, and Canada Mortgage Group Inc., which has also been operating as Dominion Lending Centres Canada Mortgage Group (Canada Mortgage Group).
FSRA said that Canada Mortgage Group violated Ontario Regulation 188/08 under the Mortgage Brokerages, Lenders and Administrators Act, 2006 by failing to take “reasonable steps” to ensure that the mortgages they have arranged for borrowers were suitable for their needs.
Canada Mortgage Group also failed to disclose in writing to the borrowers all the material risks associated with the mortgages, as well as neglected to disclose any conflicts of interest.
“FSRA further alleges that Amin, on several occasions, contravened Section 3 of Ontario Regulation 187/08 by causing Canada Mortgage Group to contravene the above listed provisions of Ontario Regulation 188/08,” the regulator said.
Speaking after the announcement that additional consultations were being held related to guidance on requirements to combat fraud, the FSRA’s Antoinette Leung told CMP that the regulator was focusing on three key items.https://t.co/0qBzxB1JQd
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 31, 2023
Kalwaney, who served as principal broker of Canada Mortgage Group, was also cited in particular as having failed to take “reasonable steps” to ensure that the brokerage and Amin complied with the legal requirements outlined by the Act.
FSRA is proposing administrative penalties against Amin ($45,000), Kalwaney ($10,000), and Canada Mortgage Group as a whole ($45,000).
The accused have requested a hearing before the Financial Services Tribunal, FSRA said.
