Elderly and non-English speakers among alleged victims
A former Ontario mortgage agent is facing penalties for allegedly falsifying mortgage documents and obtaining loans without borrowers' knowledge or consent.
The Financial Services Regulatory Authority of Ontario (FSRA) has proposed $83,600 in administrative penalties against Po Yuk (Peggy) Chan for multiple alleged violations of the Mortgage Brokerages, Lenders and Administrators Act.
FSRA accused Chan of falsifying mortgage documents and obtaining mortgages on borrowers' properties without their knowledge or authorization. The regulator alleged that Chan engaged in multiple instances of misconduct, including dealing outside her brokerage, receiving remuneration improperly, and providing false or deceptive information.
One alleged victim, identified as KT, claims Chan offered him a $200,000 interest-free loan in exchange for registering what he thought was an $800,000 line of credit on his property. Instead, FSRA said Chan placed an $800,000 mortgage on the property without KT's knowledge.
"During the Chan Interview, Chan admitted to acting as KT's mortgage agent for the transaction, earning a broker fee of $7,000 while not processing the transaction through her brokerage," FSRA stated in a document. "She also admitted to removing $100,000 from the joint account without KT's knowledge or authorization."
FSRA alleged similar patterns of deception with other borrowers, including elderly individuals who did not speak English. In one case, a borrower identified as YHC allegedly discovered a $430,000 mortgage on her property after being told she was signing a $50,000 loan.
The regulator has proposed eleven administrative penalties totalling $58,600 for receiving remuneration outside her registered brokerage and five penalties totalling $25,000 for providing false or deceptive information.
Read next: FSRA alleges broker submitted 19 applications with altered or fabricated documents
Chan's mortgage agent license expired on March 31, 2023. Her brokerage, Northwood Mortgage Ltd., terminated her on December 9, 2022, for breach of contract.
Criminal charges related to these allegations were filed against Chan on September 19, 2023, and are pending in the Ontario Court of Justice. Civil litigation is also ongoing.
Chan has requested a hearing before the Financial Services Tribunal regarding FSRA's enforcement proposal.
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