Skip to content

Tagmortgage fraud

Stop Mortgage Fraud

Beware of mortgage fraudsters….

Stop Mortgage Fraud

I wrote that back in 2006.  Since then we have seen some provincial governments step in with laws to help protect unsuspecting homeowners.  You can also purchase Title insurance or an alternative method of protection.

A couple of years ago, Toronto police said a woman used fake ID to get a $300,000 mortgage.  The unsuspecting homeowner only discovered a mortgage had been fraudulently registered on their home when they received mortgage documents in the mail.

This is not a new scam. It’s happened many times in the past. Here’s a big one from 2010 that involved $140million and hundreds of people.  This one was huge.  Most are not this big or elaborate.  It’s the smaller ones, like the recent one for $300,000, that are more common place.

HOW IT’S DONE

Continue reading “Beware of mortgage fraudsters….”

Recent mortgage fraud in Toronto.. you can prevent it easily.. Read on.

In November, Toronto police said a woman used fake ID to get a $300,000 mortgage.  The unsuspecting homeowner only discovered a mortgage had been fraudulently registered on their home when they received mortgage documents in the mail.

This is not a new scam. It’s happened many times in the past. Here’s a big one from 2010 that involved $140million and hundreds of people.  This one was huge.  Most are not this big or elaborate.  It’s the smaller ones, like the recent one for $300,000, that are more common place.

HOW IT’S DONE

Continue reading “Recent mortgage fraud in Toronto.. you can prevent it easily.. Read on.”

$20million condo fraud in Toronto shows need for more regulation.

Reports have surfaced about a Property Manager that allegedly obtained fraudulent mortgage funds on behalf of 1,000 unsuspecting condo owners.   The Toronto Star reports that Manzoor Moorshed Khan, president of Channel Property Management, borrowed millions against at least five condo buildings, without the owners knowing about it.

Equitable Trust, a Canadian financial institution, says they were taken for $14million worth of fraudulent mortgages.  The Star reports that Khan falsified a series of legal papers to obtain the loans fraudulently.

In another situation related to the same property management company, it is alleged that Khan siphoned off some money through construction fraud.   Apparently, he tendered a bid for some construction work on one of the buildings he was managing through Canali Engineering, a company he created.  He submitted the lowest bid at $1.2million.  Then he inflated the bill to $1.3million… but his company never did the work.. he hired a sub-contractor to do the work at half the cost.

It should be noted that a statement of defense has been filed by Khan denying the allegations.

CBC.ca reports that condo fees in one of the buildings managed by Khan’s company has gone up from $340/mth to $780/mth….and the values have gone from $152k to $70k.

They say fraudsters cannot be stopped, only discouraged through regulations and laws.   Clearly, some more regulations need to be put in place.  CBC.ca quotes Dean McCabe, president of the Association of Condominium Managers of Ontario (ACMO), saying “there is no licensing or regulation of condo property managers.   Khan could manage condos next week, next month or next year”.   ( Yikes!  That’s a scary thought.)  Mr. McCabe is calling on the government to enforce licensing or regulation.

Channel Property Management manages upwards of 40 buildings….. We’ll report more on this story as it happens…

Your mortgage is paid? Beware of mortgage fraudsters….

“You’ve worked hard all your life… your house is finally paid off.  You decide to it’s time to get a smaller house, maybe a condo or you just want travel.  Does this sound like someone you know?  You sell your home but discover that someone has registered a mortgage on your house without you knowing it.  Sound impossible?  Guess again… this is Mortgage Fraud and it’s happening now.”

I wrote that back in 2006.  Since then we have seen some provincial governments step in with laws to protect unsuspecting homeowners….  You can also purchase Title insurance to protect you as well.    But once you have been victimized by the crooks, you still need to make a claim and go through the hassle of clearing things up…. Who wants to go through making a claim? This takes time and can be a big paid in the rear. 

What if there was a way to make yourself less of a target?   The good news is there is a better way to protect yourself….. The criminals go after homes that have no mortgage.  This is PUBLIC information.  Anyone can find out if you have a mortgage just by going to the Land Registry Office and doing a search.   So what should you do?

The solution is to register a mortgage on your home.  This doesn’t mean you need to borrow money.  By getting a secured line of credit you will have a collateral mortgage registered.  The criminals will not know if you have a balance on that mortgage or if it’s $0.   And they will probably go searching for the next home that has no mortgage.

What makes this product unique is that it is available to both salaried and self-employed individuals that cannot prove their income.  If you don’t use it, it doesn’t cost you anything.  

Let me know if you would like more details about this.

Mortgage Fraud statistics are a mystery in Canada

Here is a good article from McLean’s Magazine that talks about more Mortgage Fraud taking place in Mississauga and other parts of Canada.

But before you read any further, just make sure you understand something… during an economic downturn, we will hear and see more crime related reports…. I’m not sure fraud has increased more or if the fraud can no longer hide behind rising house prices and stable employment…

One of the big mysteries is that we don’t know how much mortgage fraud really takes place in Canada.  That’s because no statistics are available…or at least are not made public.

The McLean’s article said the Canadian Bankers Association says they have no stats on mortgage fraud… and CMHC said that ‘it wasn’t able to provide that data prior to the article being published’…..  Come on…  no one has these statistics???  Then how do we know fraud is a problem??   Clearly, the Bank’s obligation is to it’s shareholders… and reporting any type of fraud could affect the value of the shares….discretion is always exercised when talking about taboo subjects like fraud.  Some have suggested it’s an acceptable cost of the mortgage business… after all, there are over $940 billion in outstanding mortgages in Canada.

Earlier this year, we saw a high profile case with BMO filing charges of mortgage fraud naming hundreds of people… the fraud was for $140 million and could cost the bank $30 million in losses.

Then in June, a report came out from the BC govt that slammed RBC and BMO for loose lending practices….  what made this report somewhat funny is that during this same week, RBC received an award for Creditor of  the Year… one of the reasons for winning the aware was that RBC was ‘thinking outside the box’.….  yeah, I guess they were..!

I don’t know if there is any correlation but the Big Six Banks (TD, BMO, CIBC, Scotia, RBC, National Bank) have been on a massive hiring blitz… hiring record number of so-called Mobile Mortgage ‘Specialists’ ….  These banks have doubled and tripled their commissioned sales force in the past few years…. That’s right, COMMISSIONED sales force… Makes you wonder…..

By the way, Bank employed ‘Mortgage Specialists’ are not registered with the Ministry of Finance like Mortgage Brokers are…no license to lose…

%d bloggers like this: