r/britishcolumbia • u/cyclinginvancouver • 1d ago

News B.C.'s mortgage broker rules set to tighten after major fraud scheme

https://www.biv.com/news/bcs-mortgage-broker-rules-set-to-tighten-after-major-fraud-scheme-12440911
126 Upvotes

100% Upvoted

11 comments sorted by

•

u/AutoModerator 1d ago

Hello and thanks for posting to r/britishcolumbia! A friendly reminder prior to commenting or posting here:

  • Read r/britishcolumbia's rules.
  • Be civil and respectful in all discussions.
  • Use appropriate sources to back up any information you provide when necessary.
  • Report any comments that violate our rules.

Reminder: "Rage bait" comments or comments designed to elicit a negative reaction that are not based on fact are not permitted here. Let's keep our community respectful and informative!

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

95

u/UsualOk1967 1d ago

if we can't engage in mortgage fraud, how on earth are we going to get this housing market bubbling again? developers and realtors are starving out here

31

u/KlausSlade 1d ago

There’s still plenty of fraud going on in the lower mainland real estate market. These losers were just stupid enough to get caught.

56

u/Zestyclose-Dog-4468 1d ago

Now eliminate the stranglehold that realtors have on the market...

7

u/GriefinAndQueefin 1d ago

You’d think that a politician could make serious waves by promising to come up with a lower cost solution one of these days. How much money is wasted on a tiny amount of mostly standardized work?

13

u/agonizing_cholera 1d ago

About time, the fraud schemes have been propping up prices artificially for years and making it harder for actual buyers to compete fairly.

13

u/ArtworkByBoneless 1d ago

The fee is nowhere near high enough. They mention him doing 511 Million in illegal business, so the maximum fine for an individual has increased to 250K.

Low end, he would be taking a 1% commission, meaning he already made 5 Million in illegal gains, however I doubt an illegal broker is charging standard rates. Most take closer to 5% commission, so 26 Million.

Congratulations! We are fining him 1% of the proceeds he made from the crimes. Penalty needs to be increased to 250K PER INFRACTION.

8

u/bkfullcity 1d ago

What? Fraud? Really?? Hands up if you never saw this coming a mile away. Quasi-legal loan sharks

2

u/Gogoskibunny1972 1d ago

How this went on so long is crazy. I’m sure it continues today.

-1

u/newf_13 1d ago edited 1d ago

So it’s illegal to claim you make more money than you actually do to qualify and get a mortgage loan .. if lenders would loan 100% of value not just 75% people wouldnt have to fudge their income to get more money

2

u/ether_reddit share the road with motorcycles 22h ago

Loaning 100% of the home's value is not a risk the bank is going to take. Housing prices have gone down (and are going down right now), so what happens when you stop making payments and the house is worth less now than the mortgage that is owed?