FSRA Imposes Administrative Penalty of $250,000 on Fortress Real Development Inc.
TORONTO, Sept. 10, 2020 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) has entered into a settlement with Fortress Real Developments Inc. (FRDI) under which FRDI will pay $250,000 in administrative penalties.
Between 2009 and 2018, FRDI and its predecessor (Fortress Real Capital Inc.) assisted borrowers in connecting to mortgage brokers and administrators, which allowed these brokers to raise over 900 million dollars in syndicated mortgage loans.
FSRA determined that there were twelve contraventions of section 2(2) of the Mortgage Brokers, Lenders, and Administrators Act (MBLAA) relating to FRDI providing services to borrowers for the purpose of financing property developments while FRDI was not licensed to do so. FSRA has issued an order that FRDI pay $250,000 in administrative penalties, in keeping with a settlement between FSRA and FRDI. A copy of the order is available at: Administrative Penalties – Fortress Real Developments Inc.
FSRA is committed to protecting consumers, including borrowers, in the sectors it regulates, such as mortgage brokering and administration.
Learn More:
- Information on Syndicated Mortgage Investment Resources
- FSRA Tips on syndicated mortgage investments
- File a complaint about a mortgage broker, agent, brokerage, or administrator
- Past FSRA enforcement actions in the mortgage brokering sector and other regulated sectors
- Check the license status of mortgage broker or agent
SOURCE Financial Services Regulatory Authority of Ontario
For Media Inquiries: Malon Edwards, Senior Communications Officer, Corporate Communications, Financial Services Regulatory Authority of Ontario, C: 647-296-5479, Email: [email protected]
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