BCFSA Issues $50,000 Penalty Against Mortgage Broker

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BC Financial Services Authority has taken enforcement action against mortgage broker, John Hawkins Anderson, by issuing a penalty of $50,000.

BCFSA found that Anderson conducted business in a manner contrary to the public interest when he:

Failed to disclose borrower financial liabilities to lenders in respect of four mortgage applications submitted to lenders; and

Failed to verify the accuracy of the borrowers’ information in respect of two of those mortgage applications.

Anderson’s misconduct goes to the heart of the role of a mortgage broker in real estate transactions which is to act as an intermediary who brings borrowers and lenders together. A mortgage broker is required to bring the relevant information to the lender to secure a mortgage for the borrower.

BCFSA reminds all mortgage brokers that they have a duty to protect both the borrower and lender. While the role of the mortgage broker must be to promote the interests of their clients, the promotion of that interest cannot be allowed to take place at the detriment of the public.

In addition to the penalty, Anderson must pay investigation and hearing costs in the amount of $18,137.05.