Home Capital’s troubles started with “unlucky” brokers – or what Canadian banks and insurers call the mortgage merchants who get caught submitting fraudulent loans documents.
The holding company disclosed that 45 independent brokers submitted loan applications that misstated borrowers’ income and other details. A securities regulator accused Home Capital of misleading investors about the fraud, and that sparked a run on deposits at the lender.
Yet the brokers, whose names are now on databases maintained by lenders and mortgage insurers, can still win business since they have’t been prosecuted for fraud.
Read more at Financial Post
This article is summarized by Canadian Fraud News Inc.
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.