BMO Fraud Claim - Real Estate Council of Alberta Formal Position Statement
Calgary, Alberta - Due to the recent BMO mortgage fraud case, RECA is issuing this formal position statement.
The Real Estate Council of Alberta (RECA) sets and enforces standards of conduct for industry members in the real estate brokerage, mortgage brokerage and real estate appraisal industry.
RECA supports BMO’s legal action and the initiation of a criminal investigation. Where it can be established criminal activity has occurred, RECA encourages law enforcement agencies to pursue criminal charges against the perpetrators of mortgage fraud. We are reviewing the BMO statement of claim as it relates to our industry. While RECA does not regulate criminal matters, we will investigate the involvement of industry members named in the law suit as it relates to the possible contravention of our own legislation – The Real Estate Act of Alberta.
In light of the scale of this problem across Canada, and to protect consumer interests, RECA encourages all levels of government to provide additional funding to police agencies to facilitate effective mortgage fraud investigations. RECA also encourages financial institutions to institute real estate appraisals conducted by qualified, licenced appraisers, as part of the mortgage transaction.
The Real Estate Council of Alberta (RECA) is an independent, non-government agency, responsible for regulating real estate, mortgage broker, and real estate appraisal industry professionals under Alberta’s Real Estate Act. RECA is mandated to protect consumers and to provide services that enhance and improve the industry and the business of industry members.