A lot of mortgage brokers will be surprised it took this long.
First Swiss, a private mortgage lender known for its seemingly insane high-fee, high-rate, 95%-LTV last-resort second mortgages, has gone belly up.
A receiver was appointed after the Financial Services Regulatory Authority of Ontario (FSRA) made a court application on an “urgent basis.” This followed “very serious” allegations of wrongdoing by First Swiss investors earlier this month.
“This appears to be a case of fraud rather than a failure to meet regulatory requirements,” FSRA told MLN. “The perpetrators of the fraud have yet to be determined, but it appears certain employees of First Swiss took steps to conceal required reporting information from the regulator, lenders and investors,” said FSRA spokesperson Russ Courtney.