Ontario watchdog says agent's repeated falsehoods make him unfit for the mortgage industry
A mortgage agent in Ontario has lost his licence after regulators found he repeatedly provided false information on official applications and had a history of regulatory violations in other industries.
The Financial Services Regulatory Authority of Ontario (FSRA) revoked Shah Ata Hussain Faridi’s Mortgage Agent Level 1 license and denied his application for a Level 2 license, citing a "consistent and ongoing pattern of dishonesty."
The decision follows a ruling by the Financial Services Tribunal (FST) in December 2024, which found that Faridi's past conduct made him unsuitable to work in the mortgage industry.
False statements
FSRA’s investigation revealed that Faridi failed to disclose prior disciplinary actions when applying for his mortgage licence in 2022 and renewing it in 2023. Specifically, he did not mention that he had been sanctioned by the Ontario Motor Vehicle Industry Council (OMVIC) and the Licence Appeal Tribunal (LAT) for violations related to his previous work as a car dealer.
Under Ontario Regulation 409/07 of the Mortgage Brokerages, Lenders and Administrators Act, 2006, FSRA can revoke or deny a mortgage license if an applicant lacks honesty, integrity, or fails to comply with the law.
Past violations
Before entering the mortgage industry, Faridi operated a used car dealership under the name Faridi Motors. In 2020, OMVIC accused him of failing to disclose key details about vehicle histories in multiple sales. He later admitted to some violations in an Agreed Statement of Fact and was fined.
However, his issues escalated when he was caught cheating on a licensing exam for car dealers in 2021. The exam proctor flagged him for receiving unauthorized assistance, and OMVIC subsequently revoked his dealer registration. Faridi attempted to appeal, but the Licence Appeal Tribunal upheld the decision, stating that he had shown a "concerning pattern of non-compliance."
Read more: Mortgage agent licence revocations proposed over dishonest conduct allegations
Faridi also misrepresented his past regulatory troubles when applying for a real estate license. When registering with the Real Estate Council of Ontario (RECO) in 2021 and renewing in 2023, he falsely answered “no” when asked if he had ever had a license revoked or faced disciplinary action.
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