Watchdog targets questionable practices of Ontario broker
Ontario's Financial Services Regulatory Authority (FSRA) has announced a series of enforcement actions against mortgage professionals in the province.
Most recently, FSRA revoked the licence of Reza Nezami-Nia, the principal broker and sole director of First Swiss Mortgage Corporation.
“Nezami-Nia is no longer suitable to be licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act),” the financial watchdog explained in its news release. “This is because, as principal broker and sole director, Nezami-Nia failed to take reasonable steps to ensure First Swiss Mortgage Corporation complied with every requirement established under the Act.”
The regulator issued this order following a settlement with Nezami-Nia.
In another case, FSRA has proposed a compliance order and administrative penalties against mortgage agent Yashna Singh for allegedly operating an unlicensed mortgage brokerage, using restricted titles without proper licensing, accepting payments from individuals other than her associated brokerage, and providing misleading documents during mortgage transactions.
Singh has challenged these proposed actions and requested a hearing before the Financial Services Tribunal.
Additionally, FSRA fined licensed mortgage broker James Michalopoulos $10,000 and added conditions to his licence after the Financial Services Tribunal upheld the regulator's decision. FSRA had initially sought to deny Michalopoulos' licence renewal entirely.
"FSRA issued this order as a result of a decision of the Financial Services Tribunal (Tribunal) dated February 21, 2024," the agency stated. "The Tribunal directed FSRA to carry out its Notice of Proposal with respect to the administrative penalty and to issue the licence with conditions. FSRA had proposed to refuse to renew the licence."
According to the regulator, Michalopoulos "provided false or misleading information" on his 2022 licence renewal application, and his past conduct and false statements on licensing applications demonstrate that he "is not suitable to be licensed without conditions."
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
