Broker allegedly bypassed her brokerage and arranged a loan through her own unlicensed company
Harpinder “Nancy” Deol, a mortgage broker in Ontario, is facing penalties for allegedly bypassing her brokerage in a mortgage deal and steering the clients toward her unlicensed private company.
The Financial Services Regulatory Authority of Ontario (FSRA) has proposed penalties totalling $110,000 for Deol and her company, 1539339 Ontario Inc., citing multiple violations of Ontario’s mortgage regulations.
In 2022, a couple (referred to as AJ and GS) turned to Deol to help secure financing for their new home in Brampton, Ontario. Deol reportedly initially assured them she could arrange a mortgage through a major bank.
Deol allegedly sent the couple a fake mortgage approval letter, claiming it came from a major bank with a 2.90% interest rate. Despite this, when the time came to finalize the mortgage, the couple discovered that no such approval existed, and their lawyer had not received any mortgage instructions from the bank.
Under pressure to close on the property, Deol’s clients were allegedly left with no choice but to accept a $1 million private mortgage from her own company, 1539339 Ontario Inc., which was not licensed to provide mortgages. The reported terms were far from favourable – a 7.99% interest rate and a hefty $45,000 lender fee for a six-month term.
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FSRA says the couple was forced to accept this private mortgage at the last minute due to the pending closing of their property purchase.
The watchdog also claimed Deol collected $34,500 in cash from AJ and GS without issuing a receipt, violating regulatory rules that require brokers to only receive payment through their authorized brokerage.
FSRA has proposed to refuse Deol’s application for a new mortgage agent licence, citing her actions as evidence that she lacks the integrity and honesty required to hold a licence.
The regulator is also seeking to impose fines of $60,000 on Deol and $50,000 on 1539339 Ontario Inc. for conducting unlicensed mortgage activities.
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