Transferring oversight of syndicated mortgages will be harder to police, fraud expert says

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Transferring oversight of syndicated mortgages to the Ontario Securities Commission (OSC) from the Financial Services Commission of Ontario (FSCO) won’t necessarily improve protections for investors, according to a certified fraud examiner.

“They won’t deal with the risks involved with these individual investors,” said Bill Vasiliou, a fraud examiner and Ontario’s former registrar under the Mortgage Brokers’ Act. “They’re not going to be policing the source of the funds.”

Syndicated mortgages are legal investments, in which multiple private investors lend money to a borrower for a mortgage on a property development. In the last few years, syndicated mortgages have boomed with sales worth $6 billion in 2015.

Read more at CBC News

This article is summarized by Canadian Fraud News Inc.