The Financial Services Commission of Ontario (FSCO) is committed to protecting consumers. FSCO takes this role seriously, and we will continue to take enforcement action against individuals and entities who contravene the law.
With this in mind, the Superintendent of Financial Services has issued a cease and desist order against Tier 1 Transaction Advisory Services Inc., and has suspended the licences Size: ## kb of Tier 1 Mortgage Corporation, First Commonwealth Mortgage Corporation, Bhaktraj Singh, Jude Cassimy, and Dave Balkissoon for practices that contravene the Mortgage Brokerages, Lenders and Administrators Act, 2006 , arising in certain syndicated mortgage transactions.
As a result of FSCO’s enforcement actions, mortgage brokers and agents can no longer do business on behalf of these entities, effective immediately. If you are an agent or broker sponsored by Tier 1 Mortgage Corporation or First Commonwealth Mortgage Corporation, your licence will be considered ‘inactive’ until you become sponsored by a mortgage brokerage that is ‘active’ and ‘authorized to sell’.
FSCO reminds all agents/brokers to review their responsibilities under the Mortgage Brokerages, Lenders and Administrators Act, 2006 , especially those related to syndicated mortgage investments. This includes completing the Lender/Investor Disclosure Statement form Size: ## kb and Addendum for Construction and Development Loans Size: ## kb, with prospective lenders or investors who are considering an investment in a mortgage.
For more information regarding your consumer protection obligations, refer to FSCO’s bulletin, Requirements for Promoting Syndicated Mortgage Investments.
If you have questions about what these enforcement actions mean to your ability to conduct mortgage business in Ontario, please contact Fariba.Mirhassanivahed@fsco.gov.on.ca. For information relating to any contractual agreement you had with the entities involved in these enforcement actions, you are strongly encouraged to seek independent financial and legal advice.