Unlicensed mortgage agent faces penalties from FSRA

Allegations include receiving improper payments, using fake titles

Unlicensed mortgage agent faces penalties from FSRA

The Financial Services Regulatory Authority (FSRA) has taken enforcement action against mortgage agent Yashna Singh for allegedly breaking several industry rules.

The Ontario financial services regulator accused Singh of operating an unlicensed mortgage brokerage and using the restricted titles of "broker" and "agent" without proper licensing.

The allegations against Singh also include accepting payments from individuals other than her associated brokerage, and providing misleading documents during mortgage transactions.

In addition, it was stated that Singh was running an unlicensed mortgage brokerage and giving false information to the FSRA.

Read next: Mortgage agent suspended over unethical practices

In response to the charges, FSRA is proposing a compliance order against Singh along with administrative penalties. Singh has challenged these proposed actions and requested a hearing before the Financial Services Tribunal.

The crackdown comes after FSRA recently revoked the licenses of 29 mortgage brokerages that failed to appoint a principal broker and/or file their 2021 annual paperwork.

Read more: Ontario regulator revokes 29 mortgage broker licenses for non-compliance

“It’s unfortunate that FSRA must take the step of revoking licenses,” Wendy Horrobin, head of licensing and risk assessment, said in a statement. “However, we are confident that brokerages have been afforded multiple opportunities to comply, without ever providing a response.”

Horrobin explained that a brokerage is not authorized to operate without a principal broker. It is also crucial to file the Annual Information Return (AIR) to ensure the integrity and credibility of those operating in the sector.

“It is important that consumer confidence and protection be maintained at all times,” she said.

Principal brokers, brokers and agents cannot deal in mortgages in Ontario if their brokerage’s licence is revoked, according to the FSRA.

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