Financial Services Regulatory Authority of Ontario issues notice proposing compliance order and licence revocation for Flex Home Loans and CAD 10,000 penalty for Michael Yosher

The Financial Services Regulatory Authority of Ontario (FSRA) issued a notice of proposal initiating enforcement action against 2748204 Ontario Inc., operating as Flex Home Loans, and Michael Yosher. FSRA alleges the conduct gives reasonable grounds to believe Flex Home Loans will not administer mortgages in accordance with the law and with integrity and honesty, and is proposing a compliance order, licence revocation and an administrative penalty. FSRA alleges Flex Home Loans and Yosher carried on business as a mortgage lender in Ontario without being licensed or exempt, contrary to section 4(2) of the Mortgage Brokerages, Lenders and Administrators Act, 2006, and included false or misleading information in renewal applications, contrary to sections 45(1) and 45(2). The proposed compliance order would require them to cease and desist from the business of mortgage lending, inform investors of Flex Home Loans of its licence revocation, and either facilitate investors in finding a new mortgage administrator or facilitate investors administering their investments themselves. FSRA is also seeking to revoke Flex Home Loans’ mortgage administrator licence 31 days after the compliance order takes effect and to impose a CAD 10,000 administrative penalty against Yosher. Flex Home Loans and Yosher have requested a hearing before the Financial Services Tribunal regarding the proposal.