The Superintendent of Financial Services (FSCO) has successfully applied to the Ontario Superior Court of Justice to appoint Toronto-based FAAN Mortgage Administrators Inc. (FAAN Mortgage) as the trustee to administer Richmond Hill, Ont.-based Building Development and Mortgages Canada Inc.’s (BDMC) syndicated mortgage loans in accordance with a court order issued last week.
In February, FSCO issued a series of fines totalling more than $1.1 million, against BDMC, three other mortgage brokerages, and four licensed individuals, following an investigation into syndicated mortgage investments.
At that time, BDMC voluntarily agreed that FAAN Mortgage would take over management of BDMC’s mortgage administration business for the benefit of investors in BDMC’s existing syndicated mortgage loans.
“Since FAAN Mortgage started managing BDMC’s mortgage administration business, BDMC has committed multiple breaches of the agreement between the two entities, including restricting access to investor data. This, among other things, impeded FAAN Mortgage’s ability to carry out its responsibilities, leading FSCO to seek a court-appointed trustee,” FSCO says in a news release.
As court-appointed trustee, FAAN Mortgage will now have additional powers to help protect investors, such as unfettered access to financial books and records, and the ability to contact borrowers and lenders without hindrance.
Investors with syndicated mortgage loans administered by BDMC may contact FAAN Mortgage at email@example.com and 1-833-495-3338 to inquire about their investments.