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Mortgage Broker Issued $40,000 Fine
BCFSA has taken enforcement action against mortgage broker Yu Hang (Howard) Yung for conducting business prejudicial to the public interest by providing misleading or false information to lenders when he knew or reasonably ought to have known that the information was misleading or false. As a result, Yung has been ordered to pay an administrative penalty of $40,000.
BCFSA investigated Yung’s conduct in relation to six separate mortgages for one borrower in 2021. Yung admitted to BCFSA’s investigative findings that he provided misleading information to lenders when he:
- Failed to disclose that borrowers had obtained or were seeking financing to purchase other properties;
- Stated that each property would be owner-occupied when he knew they would not be; and
- Submitted a mortgage application for a refinance indicating it would be owner-occupied, however the mortgage applications for the other five properties indicated that the refinanced property would be a rental.
Yung self-reported this misconduct and took other mitigating action, including seeking professional advice and further education, and reaching a settlement with the borrowers.
BCFSA reminds all mortgage brokers that they have a duty to protect their clients and uphold the regulatory framework. While the role of the mortgage broker must be to promote the interests of their clients, the promotion of that interest cannot be unlawful or otherwise detrimental to public market integrity.
More Information
Media Contact:
Kate Bilney
Communications Manager, [email protected]
Visit: www.bcfsa.ca