Ontario Woman Loses $85,000 Refinancing Mortgage Through Unlicensed Broker
In Ontario, a significant warning has emerged regarding unlicensed individuals accepting mortgage funds. The Financial Services Regulatory Authority of Ontario (FSRA) has notified potential borrowers to exercise caution before engaging with mortgage brokers.
Warning from the Financial Services Regulatory Authority of Ontario
The FSRA issued an urgent alert after a woman, Randee Solomon, reported a distressing experience. She lost $85,000 in a transaction involving a broker who falsely claimed to be licensed. Solomon intended to use the funds to pay down her mortgage but has now found herself in jeopardy of losing her family home.
Details of the Incident
- Name: Randee Solomon
- Location: Scarborough, Ontario
- Amount Lost: $85,000
- Broker’s Name: Dianne Van Rossum (not licensed)
Two years ago, Solomon fell behind on mortgage payments due to her father’s health issues. In her attempt to catch up, she sought assistance from Dianne Van Rossum, believing her to be a legitimate broker. Solomon was unaware that Van Rossum lacked the necessary licensing.
After transferring the funds, Solomon learned that the cheque had been cashed, but the payment was never applied to her mortgage. “When I found out the money didn’t go to the right place, I felt betrayed and angry,” Solomon stated.
FSRA’s Advisory on Mortgage Brokers
The FSRA’s warning advises consumers to verify the credentials of anyone offering mortgage services. Gina Stephens, the Director of Mortgage Broker Conduct, highlighted the importance of asking questions and checking the licensing status of brokers through FSRA’s official website.
How to Verify Your Mortgage Broker
- Obtain the broker’s name or license number.
- Check the FSRA’s website for licensing verification.
- Review the enforcement database for any actions against the brokerage.
As for Solomon, the $85,000 was intended to preserve her home. Without it, she now faces the threat of foreclosure. “I’m mustering through. But the situation is the same,” she expressed, reflecting the precariousness of her financial situation.
Potential borrowers are urged to remain vigilant and ensure they engage with licensed professionals to avoid similar mishaps. The FSRA remains a crucial resource for anyone seeking mortgage advice in Ontario.
