Money: Unregistered mortgage broker in hot water over $500 million in questionable home loans - - PressFrom - Canada
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MoneyUnregistered mortgage broker in hot water over $500 million in questionable home loans

07:20  31 may  2019
07:20  31 may  2019 Source:   vancouversun.com

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The Registrar of Mortgage Brokers has issued a cease-and-desist order against an unregistered mortgage broker linked to over $ 500 million in mortgage loans from 2009 to 2018. Jay Chaudhary is accused of using registered brokers and real estate agents to arrange the questionable mortgages

The Registrar of Mortgage Brokers has issued a cease-and-desist order against an unregistered mortgage broker linked to over $ 500 million in mortgage loans from 2009 to 2018. Jay Chaudhary is accused of using registered brokers and real estate agents to arrange the questionable mortgages

Unregistered mortgage broker in hot water over $500 million in questionable home loans© Provided by PostMedia Digital

The Registrar of Mortgage Brokers has issued a cease-and-desist order against an unregistered mortgage broker linked to over $500 million in mortgage loans from 2009 to 2018.

Jay Chaudhary is accused of using registered brokers and real estate agents to arrange the questionable mortgages, some involving major lenders and documents altered to inflate income numbers.

Chaudhary was once registered but has not been licensed as a submortgage broker since 2008, when he was suspended for four months after lenders raised concerns.

The cease-and-desist order issued on Thursday concludes, “the size and scale of (his) unregistered broker activities supported by a network of regulated individuals, represents a significant risk to the integrity of the real estate and financial services marketplace.”

CMHC says Canadians debt levels hit record highs at end of last year

CMHC says Canadians debt levels hit record highs at end of last year TORONTO — Canadian household debt reached a record high at the end of last year even as mortgage activity slowed, the Canada Mortgage and Housing Corp. said in a report out Wednesday. The debt to income ratio of Canadians hit a record high of 178.5 per cent in the fourth quarter last year as mortgage holders continued to take on non-mortgage debt. The ratio increased as average monthly required payments rose 4.5 per cent compared with a year earlier, while disposable income rose only 2.5 per cent, the agency said.

The Registrar of Mortgage Brokers has issued a cease-and-desist order against an unregistered mortgage broker linked to over $ 500 million in mortgage …

 Unregistered mortgage broker in hot water over $ 500 million in questionable home loans . B.C. regulator accuses unregistered mortgage broker in case that spans almost a decade with hundreds of files, some involving major lenders and documents altered to inflate income numbers.

It accuses Chaudhary of duping borrowers into believing he was a broker who was dealing directly with lenders. He is accused of actually collecting referral fees and feeding false or altered documents to registered brokers who arranged mortgages on his behalf.

“He placed borrowers at risk of being placed into mortgages they cannot afford and lenders at risk of making loans they might not otherwise have made,” said the order.

Unregistered mortgage broker in hot water over $500 million in questionable home loans© Jonathan Hayward The Canada Mortgage and Housing Corporation introduced stress testing last year, making it harder to get a mortgage.

An investigation into Chaudhary started after the Registrar of Mortgage Brokers received two complaints about his conduct in mid-2017, just as the federal Office of the Superintendent of Financial Institutions or OSFI was issuing its final B-20 guidelines.

New mortgage loans slowed in Canada but overall value is still rising, says CMHC

New mortgage loans slowed in Canada but overall value is still rising, says CMHC The number of mortgage loans in Canada grew at a slower pace in the fourth quarter as housing activity cooled, according to a new report from the Canadian Mortgage and Housing Corporation, but the value of all mortgages is still rising. There were 223,000 new mortgage loans in the last three months of 2018, which is 4.8 per cent lower than the same period a year ago, the CMHC said. "While indebtedness of Canadian households remains elevated, growth in the volume of mortgage activity slowed in the last quarter of 2018, partly reflecting lower housing market activity," said Geneviève Lapointe, senior market analyst at CHMC in the report.

UNREGISTERED MORTGAGE BROKER in hot water over $ 500 million in questionable home loans ! The Metro Vancouver housing market has gone through some dramatic changes over the last six months, as buyer demand has been hit by tougher federal.

 Unregistered mortgage broker in hot water over $ 500 million in questionable home loans . CMHC's first-quarter earnings increase to 4 million despite dip in revenues. High home prices in big cities are pushing some first-time buyers to relocate way past

The B-20, which came into effect in January 2018, is most commonly associated with stress testing by lenders to ensure borrowers can afford to make payments if interest rates rise.

But it also has stipulations for “federally registered financial institutions” to verify income, because it’s “a key factor in assessing the capacity to repay a mortgage loan, and verification of income helps to detect and deter fraud and misrepresentation.”

The cease-and-desist order gives details about multiple cases.

After registrar staff looked into the first complaints against Chaudhary, they found that 25 out of 26 mortgage applications submitted to mortgage lender CMLS Financial Ltd. on Chaudhary’s behalf by an unnamed registered broker included altered Canada Revenue Agency tax documents.

The order said an internal audit by North Vancouver-based BlueShore Financial of mortgage files submitted by this unnamed registered broker between 2012 and 2017 found that out of 48 of them, there were discrepancies in 15, with more than half of these being insured by the Canada Housing and Mortgage Corporation or Genworth Canada.

Canadians carry debt later in life

Canadians carry debt later in life Financial freedom at 55 appears to be a vanishing dream as Canadians carry bigger debt loads later in life and seniors continue to be the group most likely to be delinquent on their mortgages, according to a report by Canada Mortgage and Housing Corp. report shows that more Canadians are carrying larger debt loads later in life.

This means a mortgage , a second mortgage , a home equity loan or a home equity line of credit, or HELOC. Who qualifies for this deduction? This year, couples filing jointly may only deduct interest on up to 0,000 of qualified home loans , down from million in 2017.

A mortgage loan or, simply, mortgage (/ˈmɔːrɡɪdʒ/) is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any

Later, assembling clues found in laptops and phones, files and yellow sticky notes, investigators found Chaudhary more widely rotated through different pseudonyms, contact numbers and email addresses to arrange mortgages based on falsified information, the order said. Aside from inflating income numbers, it said Chaudhary also used the names of accounting firms who said they were never involved in preparing documents such as the submitted tax returns.

One spreadsheet summarized Chaudhary’s activities since 2009, making references to “multiple transactions per year and identified at least 20 (registered) submortgage brokers and real estate (agents) as referral sources for the transactions.”

In all, the cease-and-desist order concluded that “from 2009 to mid 2018, (he) worked on 875 files, generated (over $5.2 million) in client fees and $642,344 in referral fees paid by the registered submortgage brokers who submitted the applications to lenders on his behalf, and arranged $511,558,206 in mortgage loans.”

A cease-and-desist order can be appealed.

jlee-young@postmedia.com

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Canadians took on less debt in first quarter of 2019 — but total amount they owe is still growing.
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