Mortgage brokers must ensure the business of the brokerage is carried out competently (Real Estate Act Rules s.67(1)(e))
1. John Doe
Mortgage broker registered at the time with 1318749 Alberta Ltd. o/a Dominion Lending Centres House, now called 1318749 Alberta Ltd. o/a Harman deep Arora Group Mortgage Alliance.
• From July 1, 2019 to June 22, 2020, John’s mortgage brokerage failed to have insurance in place
• John was the broker at the time
• During the period of July 1, 2019 to June 22, 2020, John’s brokerage handled commercial mortgage files
• $1,500
2. John Doe
Mortgage broker registered with Global Mortgage Experts Inc.
• From July 1, 2018 to September 27, 2018, Goyal’s mortgage brokerage failed to have insurance in place
• John was the broker at the time
• During the period of July 1, 2018 to September 27, 2018, John’s brokerage handled commercial mortgage files
• $1,500
3. John Doe
Mortgage broker registered with Yorkfield Financial Corporation
• From July 1, 2018 to July 19, 2020, John’s mortgage brokerage failed to have insurance in place
• John was the broker at the time
• On June 19, 2020, John’s mortgage brokerage ceased operations
• The brokerage was reinstated on July 20, 2020, with proof of insurance
• During the period of July 1, 2018 to June 19, 2020, John’s brokerage handled commercial mortgage files
• $1,500
4. John Doe
Mortgage broker registered at the time of conduct with Real Capital Corp. Currently not registered.
• From Oct 1, 2018 to June 19, 2020, John’s mortgage brokerage failed to have insurance in place
• John was the broker at the time
• On June 19, 2020, John’s mortgage brokerage ceased operations
• $1,500
Learning Opportunity:
All mortgage brokerages are required to carry errors and omissions insurance. A mortgage broker must also ensure the business of the brokerage is carried out in accordance with the legislation. In these cases, the brokerages did not have errors and omissions insurance for several months, yet handled multiple mortgage files. The brokerages put their clients at risk as they were not protected by insurance.
