The Financial Services Regulatory Authority of Ontario (FSRA) issued orders revoking the mortgage brokerage licence of Harold the Mortgage Closer Inc., refusing to renew the mortgage broker licence of Harold Gerstel, and imposing administrative monetary penalties totalling CAD 70,000 on Gerstel, following a decision of the Financial Services Tribunal. The proceeding stemmed from a Notice of Proposal issued on June 22, 2023, after which Gerstel and the brokerage requested a Tribunal hearing on July 6, 2023. The Tribunal found Gerstel not suitable to be licensed due to failure to cooperate with a regulatory investigation and repeated provision of false or misleading information to FSRA during the investigation and in licensing applications, contrary to the Mortgage Brokerages, Lenders and Administrators Act, 2006 and its regulations. It also upheld administrative penalties as appropriate given Gerstel’s “flagrant” failure to cooperate and “repudiation of FSRA’s regulatory mandate and authority,” and revoked the brokerage licence because Gerstel, as principal broker, was not suitable to be licensed. FSRA noted that a second Notice of Proposal concerning Gerstel and related entities, issued on April 30, 2024, remains before the Tribunal.
Financial Services Regulatory Authority of Ontario 2025-04-04
Financial Services Regulatory Authority of Ontario revokes Harold the Mortgage Closer mortgage brokerage licence, refuses to renew Harold Gerstel’s mortgage broker licence and fines him CAD 70,000
The Financial Services Regulatory Authority of Ontario revoked Harold the Mortgage Closer Inc.'s brokerage licence and refused to renew Harold Gerstel's broker licence, imposing CAD 70,000 in penalties. The Financial Services Tribunal found Gerstel unsuitable due to non-cooperation and false information, violating the Mortgage Brokerages, Lenders and Administrators Act, 2006. A second Notice of Proposal concerning Gerstel remains under Tribunal review.