A B.C. mortgage broker has been ordered to pay $35,000 for failing to report misleading mortgage applications submitted under his name with his login credentials.
According to a press release issued by the BC Financial Services Authority, Siavash Ahmadi, a registered submortgage broker, was found to have engaged in unethical conduct that compromised the integrity of the mortgage lending process. In March 2020, Ahmadi met with a prospective client and, after reviewing their documentation, concluded they would not qualify for a mortgage. He declined to apply.
While Ahmadi was travelling internationally, a mortgage application for that client was submitted through his Filogix account by Ksenia Ivanova, who was in a relationship with Ahmadi at the time. Filogix is a platform that connects mortgage brokers and lenders. Ahmadi discovered the application had been submitted and approved upon his return. The application included inaccurate information and documentation, yet Ahmadi took no steps to cancel it or notify the lender of the inaccuracies, the press release notes.
The BC Financial Services Authority (BCFSA) found that the false information was intended to create a more favourable financial picture for the client, thereby increasing the chances of loan approval. The agency said this conduct put both lenders and borrowers at risk.
Between January 2020 and January 2021, Ahmadi was dealing with personal health issues and unable to conduct business fully. During that time, Ivanova acted on his behalf, including handling client documents. Ahmadi also accepted documents from third parties, including Ivanova, for at least eight applications without meeting the clients directly. These submissions included misleading information, such as altered income tax statements and misrepresented incomes.
For failing to report the inaccuracies and for accepting documents without verifying their authenticity, Ahmadi has been ordered to pay a $35,000 administrative penalty and $3,500 in enforcement costs. BCFSA previously fined Ivanova $35,000 for her role in submitting misleading and inaccurate mortgage applications.
“BCFSA is committed to ensuring integrity in the mortgage services industry and will not hesitate to take action against those who compromise the public interest,” said Jon Vandall, BCFSA’s Senior Vice President, Compliance and Enforcement. “The substantial administrative penalty of $35,000 reflects the severity of Ahmadi’s actions and serves as a clear message that such misconduct will not be tolerated.”
The maximum penalty under the Mortgage Brokers Act for individual brokers is $50,000.
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