Ontario's Minister of Government Services Gerry Phillips and provincial Burlington Conservative MPP Cam Jackson both say the public needs better protection from fraud artists who secretly commandeer property titles from legitimate owners, drain the value from their homes by taking out new mortgages, and then disappear. Phillips met recently with about 50 leaders in the field, including mortgage brokers, bankers and real estate lawyers to work on ways to tighten up the system.
"It is growing and it is an item of concern to us, so we're moving quite aggressively on it," Phillips said yesterday. "If we're going to tackle this thing, we've got to do it together." Jackson, whose opposition portfolio includes seniors, says Queen's Park should order the mortgage industry to create and fund an insurance system that would protect homeowners from criminals who steal identities to obtain mortgages for properties they don't own.
Insurance against title fraud is available today, but it's expensive, Jackson said. The businesses that profit from mortgage lending should also be the ones to protect consumers who become victims of mortgage fraud, he said.
"In my view, that's the fairest way to do it." Although there are no specific numbers available on real estate crime in Canada, it is generally agreed that it is rising.
A report by the Law Society of Upper Canada last year found that changing business conditions have helped to create a fertile climate for mortgage fraud. An increasingly competitive mortgage market, with more brokers and more lenders, plus technology that makes it possible for huge transactions to take place without parties ever actually meeting, have made it easier for criminals, the report said.
Competition between lenders and a hot real estate market have created pressure for quick approvals, the report said, exposing the industry to further risk. The report found that mortgage fraud in the United States is worth several billion dollars annually.
Jackson said the crime is still rare in Canada, but the consequences can be severe for victims who are left struggling to prove they are the legitimate owners of their own properties - after they have lost control of their own titles. Jackson said yesterday that seniors in particular are vulnerable to mortgage fraud because they are more likely to have clear title to their properties.
That means there is more equity to steal from them. Jackson said the government should make everyone in the process more accountable, including lenders, brokers and lawyers. Phillips said his government is planning to tighten controls over the registration of real estate documents.
"We're all going to have to work harder on this," Phillips said. "The solution to this won't be an event. It's going to be an ongoing process. I have this feeling that as we plug one hole, we're going to have to stay ahead of the criminals before they find another hole."
Detective Jack Connolly of the Hamilton police major fraud branch said his Toronto counterparts have been inundated with real estate fraud cases, but so far, at least, Hamilton has been relatively untouched. Lenders need to check out their customers carefully to keep the problem from growing here, he said.
"Identity theft is a big problem, and that paves the way for mortgage fraud," he said. "Mortgage lenders have to practise more due diligence in making sure that the people standing there in front of them are the people they purport themselves to be."
hamiltonspectator.com
Toronto real estate. ONTARIO PROPERTY OWNERS DESERVE BETTER PROTECTION!
![Toronto real estate. ONTARIO PROPERTY OWNERS DESERVE BETTER PROTECTION!]()
Reviewed by citra
Published :
Rating : 4.5
Published :
Rating : 4.5