Today we saw a fine handed down to a former BC mortgage agent. The fine was $50,000.00 for her admission of creating documents that she knew were misleading. Basically we have a broker making up paystubs and letters of employment. This happened on 5 separate files.
While at least some punishment was doled out, the fine of $50,000.00 is probably close to the commissions earned on the 5 mortgages. BC mortgages tend to be fairly large, and even in 2017 to 2018, when the offence occurred, the average mortgage amount could have easily netted the broker more than the $50,000.00 fine she had to pay to the regulator.
While I am all for hefty fines, I am also for strong deterrents to ensure that people do not commit fraud. If the punishment is basically a fine of the amount earned – and only if you get caught, then where is the deterrent?
Brokers and agents that commit fraud – in any fashion, make it that much harder for the legitimate, hard working people in our industry. Thousands of brokers and agents worked tirelessly to help clients achieve their dreams, and dishonest, and downright criminal agents only make the job that much harder.
We must also ask ourselves: Do agents and brokers like this allow property price to climb? If people are getting approved for properties they cannot afford – you are increasing demand on already low inventories. Supply / demand theory dictates that prices move higher, resulting in other people overpaying.
While no one will get mad at a bank getting defrauded, it harms and hurts the average, honest homebuyer looking to build their life. It harms and hurts the honest, reputable brokers and agents that have spent their career helping people. It certainly is worth more than a $50,000.00 dollar slap on the wrist.
Ryan Sims insights, thoughts, and analysis 
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