Regulator outlines allegations involving unsuitable mortgage arrangements
Ontario’s financial services regulator has initiated enforcement action against mortgage agent Shawn Leonard Ruccia, alleging he arranged unsuitable high-cost mortgages for clients, many of whom were seniors.
In a Notice of Proposal dated July 17, 2025, the Financial Services Regulatory Authority of Ontario (FSRA) said it is seeking to revoke Ruccia’s mortgage agent level 2 licence and impose an administrative penalty of $70,000.
According to FSRA, Ruccia was licenced under the Mortgage Brokerages, Lenders and Administrators Act, 2006 since July 29, 2021. He was previously authorized by Dominion Lending Centres National Ltd. and later by Get A Better Mortgage Inc.
The regulator alleges that between August 2022 and August 2023, Ruccia arranged seven mortgages totalling more than $2 million for nine borrowers referred to him by 1985886 Ontario Ltd., operating as Eliminate Contract Consultants Ltd., which is not licenced under the Act. Six of the borrowers were seniors, and four were retired.
FSRA said the mortgages carried annual percentage rates between 30.46% and 38.82%, were interest-only, had one-year terms, and required full repayment of principal at maturity. The mortgages were financed by private lenders, and Ruccia did not present other lending options. In at least one case, no income documentation was collected, and a borrower reported that mortgage terms were not explained.
The regulator stated that at least one borrower was forced to sell his home to repay the mortgage when it came due. Ruccia received approximately $60,000 in fees from arranging the transactions.
FSRA alleges that Ruccia contravened section 3 of Ontario Regulation 187/08 by failing to take reasonable steps to ensure the mortgages were suitable, which in turn caused his brokerage to violate subsection 24(1) of Ontario Regulation 188/08.
Citing sections 19 and 21 of the Act, FSRA said Ruccia’s past conduct affords reasonable grounds to believe that he “will not deal or trade in mortgages in accordance with the law and with integrity and honesty.”
Ruccia has requested a hearing before the Financial Services Tribunal, which will review the proposal. If no hearing is requested within 15 days of receipt, FSRA may proceed with the licence revocation and penalty order.
What are your thoughts on the recent announcement? Share your insights in the comments below.
