Ontario watchdog’s first enforcement report highlights aggressive action in mortgage brokering
Ontario’s financial watchdog signalled that enforcement in the mortgage space would toughen. Its first Enforcement Annual Report for 2024–25 showed just how far that shift has gone.
The Financial Services Regulatory Authority of Ontario (FSRA) said enforcement activity grew in both volume and complexity, supported by “a more robust supervisory framework,” “stronger statutory authorities and FSRA rules,” and higher penalty ceilings under the Mortgage Brokerages, Lenders and Administrators Act.
The regulator initiated 100 enforcement actions, up from 65 a year earlier, and imposed about $1.2 million in administrative monetary penalties, most of them in mortgage brokering.
“Enforcement is critical to FSRA’s mandate to protect consumers, promote high business standards, and deter fraud and misconduct in regulated sectors,” Elissa Sinha, director of litigation and enforcement, said in the report.
She added that FSRA’s goal is “to stop problems early, prevent harm, and discourage future misconduct.”
Mortgage files dominated the case list. In one settlement, Mortgage Smart admitted it failed to take reasonable steps to ensure six private mortgages were suitable for vulnerable borrowers and that it failed to disclose “all material risks and conflicts of interest,” respond to complaints, keep required records and avoid giving false information.
FSRA revoked the brokerage’s licence and imposed $50,000 in penalties on Ranjit and Kamal Dhillon.
Forest City Funding Inc. and principal broker William Handsaeme admitted that the brokerage knowingly assisted borrowers in obtaining second mortgages that breached first‑mortgage terms and were used to repay supposedly “gifted” down payments.
FSRA levied $75,000 in penalties on the brokerage, $7,500 on Handsaeme, and suspended his licence for a year.
The regulator also targeted agents operating outside their firms. Mortgage agent Sumit Pal Singh arranged a mortgage and charged clients about $15,000 directly. The Financial Services Tribunal found the breach “serious as it puts at risk the protections to the public,” ordering a $5,000 penalty and licence conditions.
In another file, Jaswinder Dhanoa submitted fraudulent down payment and income documents and routed fees through a personal corporation; FSRA imposed $52,000 in penalties, matching what it called the entire monetary gain.
FSRA concluded enforcement action against Forest City Living and two licensed individuals over unsuitable, high‑interest mortgages that pushed a family into distress. https://t.co/SpTcMM57nS
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 27, 2026
In an interview with Canadian Mortgage Professional last year, Antoinette Leung, head of financial institutions and mortgage brokerage conduct, said the regulator would maintain its focus on private lending because “we’re going to start looking at medium and smaller firms” and expected further growth in the space.
She added that directors and officers shared responsibility for ensuring principal brokers have “the right tools and resources to do the work.”
Speaking to Canadian Mortgage Professional earlier this year, TCG Lending Centres principal broker Carmen Costa said Ontario’s framework is “appropriate, and in many ways necessary” even if operationally demanding, because “strong oversight is important” when dealing with complex products that can reshape clients’ finances.
The crackdown is welcome news for the industry, according to a mortgage brokering veteran who described the approach to the profession by some less-established brokers and agents as “extremely frustrating.”
“I’ve seen more cases against bad actors in the last 12 to 18 months than in previous years,” Joe Sammut, broker of record at Mortgage Architects – A Better Way, told Canadian Mortgage Professional.
“They [FSRA] seem to be clamping down and cleaning up, and they’re making sure the fines they’re enacting on people are publicized.
“They’re finally taking seriously the role we play as mortgage professionals in the transaction. It’s frustrating to see the lack of professionalism [from some mortgage agents]. But I think what the latest regulation is doing is making the good ones even better and the bad ones are that much more obvious.”
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