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Superintendent of
Financial
Services
 
Ontario Coat of Arms
 
Surintendant des
services
financiers
 

REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 (the “Act”), in particular sections 7, 23, 24, 25, 30, 38 and 39,

AND REGARDING Ontario Regulations 188/08, 191/08 and 192/08,

AND REGARDING First Commonwealth Mortgage Corporation



ADMINISTRATIVE MONETARY PENALTY ORDER

First Commonwealth Mortgage Corporation (the “Brokerage”) is a licensed mortgage brokerage (licence #10636) under the Act.

On June 25, 2014, the Superintendent of Financial Services (“Superintendent”) issued a Notice of Proposal to Impose Administrative Monetary Penalties (the “Notice of Proposal”) in the total amount of $5,500 on the Brokerage. The Superintendent had determined that the Brokerage committed seven contraventions of the Act and its regulations.

The Brokerage requested a hearing before the Financial Services Tribunal (the “Tribunal”) in accordance with the Act. A hearing before the Tribunal was held on February 11, 2015.

By decision dated April 27, 2015, the Tribunal directed the Superintendent, by order, to carry out his proposal as set out in the Notice of Proposal.

ORDER

Administrative monetary penalties in the total amount of $5,500 are hereby imposed on First Commonwealth Mortgage Corporation in the following manner:

Failing to retain Investor/Lender Disclosure Statements in its mortgage files, contrary to subsection 48(4) of Ontario Regulation 188/08 - $500

Failing to provide signed Investor/Lender Disclosure Statements to each investor/lender, contrary to subsection 31(1) of Ontario Regulation 188/08 - $500

Failing to disclose appraisal fees on an Investor/Lender Disclosure Statement, contrary to subsection 31(1) of Ontario Regulation 188/08 - $1000

Failing to obtain the signature of the borrower for a Borrower Disclosure Statement, contrary to section 6 of Ontario Regulation 191/08 - $500

Failing to disclose legal fees and disbursements on a Borrower Disclosure Statement, contrary to subsection 5(1) of Ontario Regulation 191/08 - $1000

Failing to disclose appraisal fees on a Borrower Disclosure Statement, contrary to subsection 5(1) of Ontario Regulation 191/08 - $1000

Failing to disclose the number of lenders that the Brokerage represented in the past year on a Borrower Disclosure Statement, contrary to section 19 of Ontario Regulation 188/08 - $1000

TOTAL $5,500

TAKE NOTICE THAT First Commonwealth Mortgage Corporation will be receiving shortly an invoice from Ontario Shared Services, a part of the Ministry of Government and Consumer Services, with information as to where and how to make the payment. First Commonwealth Mortgage Corporation must pay the Administrative Monetary Penalties no later than 30 days after the date of the invoice.

If you fail to pay the Administrative Monetary Penalty in accordance with the terms of this Order, the Superintendent may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An Administrative Monetary Penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario on the date of April 25, 2015.


Original signed by

Anatol Monid
Executive Director
Licensing and Market Conduct Division

By Delegated Authority from
The Superintendent of Financial Services

              

© Queen's Printer for Ontario, 2015