Trustee appointment strengthens administrative powers
Investors will have greater protection from investments in a portfolio of syndicated mortgage loans in Ontario following a court ruling Friday.
The Superior Court of Ontario approved an application from the province’s Superintendent of Financial Services to appoint FAAN Mortgage Administrators as Trustee to administer the syndicated mortgage loans of BDMC.
BDMC along with three other mortgage brokerages, and four licensed individuals, were subject to FCSO orders pursuant to a settlement, in February 2018.
The firm voluntarily agreed that FAAN Mortgage would take over management of BDMC’s mortgage administration business for the benefit of investors in BDMC's existing syndicated mortgage loans.
However, the FSCO says that BDMC committed multiple breaches of the agreement, leading the regulator to seek a formal Trustee appointment through the Court.
FAAN Mortgage will now have additional powers to oversee BDMC’s syndicated mortgage loans, and the support of the Court to help protect investors, such as unfettered access to financial books and records.
It will also be able to contact borrowers and lenders without hinderance.
The regulator says that investors with syndicated mortgage loans administered by BDMC may contact FAAN Mortgage at [email protected] and 1-833-495-3338 to inquire about their investments.
