Much like in the U.S. Sand States in 2007-08, it turns out that a big mortgage lender in Toronto that focused on lending to immigrants is riddled with fraud. From Bloomberg:
The fate of Home Capital, known as a “b-lender” because it caters to new immigrants and other homebuyers who can’t get a traditional bank loan, remains in question. A run on deposits and stock plunge began late last month after regulators accused the company of misleading investors about potentially fraudulent mortgage applications.Also from Bloomberg:
A Canadian regulator said it disciplined two mortgage brokers who funneled business to Home Capital Group Inc., marking the first disclosure of action taken against dealers who submitted fraudulent loan applications to the embattled mortgage lender.[Comment at Unz.com]
The Financial Services Commission of Ontario conducted its own review into Home Capital in relation to the company severing ties in 2015 with 45 brokers who used falsified client income on applications. The agency found that broker Gagandeep Duggal and agent Zaheer Mohammad weren’t complying with the rules, according to a spokesman. Home Capital and the regulator hadn’t disclosed the names of any dealers sanctioned until now..