Mortgage Fraud - Red Flags

• Client delays, makes excuses or will simply not provide photo ID, when requested
• Land title records do not match with seller information
• Buyers' or sellers' names are only partially indicated - last name appears without a first name or the first name is indicated by only an initial
• Client attributes name differences to inconsistent or improper English translation of names
• Buyer purchases property far from place of employment for no apparent reason
• Buyer is purchasing many properties with high ratio mortgages, using different names or variations of his/her name
• Source of deposit cheques is other than buyer
• Deposit is provided in cash or by money order
• Buyer purchases investment property, yet does not own a principal residence
• Parties have no formal office; communication is by cell phone, email and fax; meetings are scheduled at restaurants
• Buyer or seller is represented by a person acting on a power of attorney
• Quick succession of trades on one property
• One lawyer represents both parties to the transaction
• Immediate possession dates
• Firm transaction with none of the usual conditions
• No counter offer
• Names appear to have been added to or deleted from the contract
• Not all parties named on the contract have signed it
• Schedules or addendums exist but are not indicated in the contract, or, schedules or addendums do not reference the original contract

Contacts for More Information:

Ontario Ministry of Government Services (Consumer Services Bureau): 416-326-8800 or www.gov.on.ca/mgs

Canadian Institute of Mortgage Brokers and Lenders: 416-385-2333 or www.cimbl.ca/fraud_intro.htm

Canadian Bankers Association: 416-362-6092 or www.cba.ca

Contact your local police department for specific concerns or cases

(Source: Compiled with information from the Real Estate Council of Alberta and chrismathers inc. crime and risk consulting)

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