TORONTO, Feb. 2, 2018 /CNW/ - The Financial Services Commission of Ontario announced today a settlement between the Superintendent of Financial Institutions and Building & Development Mortgages Canada Inc. (BDMC). Details of the order that was issued on consent can be found on the FSCO website. As a result of that settlement, BDMC has stopped all mortgage brokerage activities. BDMC has also agreed that its mortgage administration functions for existing syndicated mortgages loans will be managed by a new arms-length administrator, FAAN Mortgage Administrators Inc., which will manage existing loans in BDMC's name.
Since BDMC was established in 2007, it has exited more than 3,500 lenders from 27 development projects with over $170 million of lender principal repaid. The average estimated annualized returns for these exits are 9.15% (unweighted). BDMC in its role as brokerage for real estate developers helped over 14,000 lenders participate in syndicate mortgages in more than 80 projects across Canada. The projects included all types of residential and commercial developments, offering a variety of terms and built forms for lenders to choose from. Through BDMC, more than $920 million has been funded into development projects, with the projects having a total built-out value of $6 billion.
Ildina Galati, the former principal broker of BDMC, said: "BDMC made a business decision to enter into a settlement with FSCO. The staff of BDMC look forward to working with FAAN Mortgage Administrators Inc., in administering the existing loans and assisting to bring them across the finish line".
SOURCE Building and Development Mortgages Canada Inc. (BDMC)
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