Mortgage Fraud Red Flags - Mortgage Brokerage Professionals

Purpose:  To help mortgage brokerage professionals evaluate whether mortgage fraud is taking place.

This bulletin applies to mortgage brokerages, brokers, and associates.

Mortgage fraud is a criminal offence. Participation in mortgage fraud also violates the Real Estate Act Rules. Industry professionals who breach the Rules face strong sanctions, including suspension or cancellation of their authorization. Industry professionals must help prevent mortgage fraud by identifying suspicious deals and notifying authorities.

Red Flags
Red flags associated with the identity of buyers/borrowers:

Red flags associated with the property value:

Red flags indicating unusual transactions:

Red flags associated with industry professional behaviour:

Red flags associated with brokerage operations:

When you identify a suspicious transaction
Contact the lender and tell them why you are suspicious. Report the results of your review to RECA in writing if the persons involved are other industry professionals (real estate associates/brokers, mortgage associates/brokers or appraisers).

Related information

Legislation

Real Estate Act Rules – sections 41(a), s.42(a)(b)

Information bulletins

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