The FCSO has successfully applied to the Superior Court of Ontario to appoint FAAN Mortgage Administrators to oversee the syndicated mortgage loans of BDMC.
The ruling Friday follows a February 2018 order made by the regulator against BDMC and three other mortgage brokerages, and four other licensed individuals involved with syndicated mortgage loans.
Although BDMC agreed voluntarily at the time to allow FAAN Mortgage to take over management of its mortgage administration business, it then committed several breaches of the agreement including restricting access to investor data.
The FSCO says this meant FANN Mortgage was unable to carry out its responsibilities, but the court order gives it additional powers and the support of the court to do so.
More market update: