The Financial Services Commission of Ontario (FSCO) says it conducted a review of 45 mortgage brokers and agents that Home Capital cut ties with after they were accused of falsifying income information several years ago.
FSCO says broker Gagandeep Duggal and agent Zaheer Mohammad were found to be in non-compliance with the province’s Mortgage Brokerages, Lenders and Administrators Act.
The Superintendent also imposed a penalty of $ 5,000 last November against Duggal for providing false or deceptive information when dealing with mortgages.
The health of Canada’s mortgage market has been a subject of much discussion in recent weeks, particularly after customers began pulling their deposits out of Home Capital, leaving the lender in a cash crunch.
Last month, the Ontario Securities Commission alleged the company misled investors in their handling of a scandal involving falsified loan applications. Home Capital has said the OSC’s allegations are without merit and it will defend itself.