Ontario regulator says activities between 2009 and 2018 enabled brokers to raise over $900 million in syndicated mortgage loans
The Financial Services Regulatory Authority of Ontario (FSRA) has announced a settlement with Fortress Real Developments Inc. (FRDI), the terms of which require FRDI to pay more than $200,000 in administrative penalties.
According to a statement from FSRA, FRDI and its predecessor company, Fortress Real Capital Inc, assisted borrowers in connecting to mortgage brokers and administrators between 2009 and 2018. Those activities allowed the brokers to raise over $900 million in syndicated mortgage loans.
FSRA said that by providing services to borrowers to finance property developments while it was not licensed to do so, FRDI had committed 12 contraventions of section 2(2) of the Mortgage Brokers, Lenders, and Administrators Act (MBLAA).
In keeping with its settlement with FRDI, FSRA has ordered the former to pay $250,000 in administrative penalties.
“FSRA is committed to protecting consumers, including borrowers, in the sectors it regulates, such as mortgage brokering and administration,” the regulator said.