TORONTO, April 4, 2025 /CNW/ - Ontario's financial services regulator, FSRA, issued orders revoking the mortgage brokerage licence issued to Harold the Mortgage Closer Inc. (HTMC), refusing to renew the mortgage broker licence issued to Harold Gerstel (Gerstel), and imposing administrative monetary penalties in the total amount of $70,000 against Gerstel.
FSRA issued a Notice of Proposal to Revoke a Licence, to Refuse to Renew a Licence, and to Impose Administrative Penalties on June 22, 2023.
"Consumers deserve a mortgage brokering sector they can trust, and that starts with transparency, honesty and accountability, said Elissa Sinha, Director of Litigation & Enforcement at FSRA.
"The Tribunal's decision affirms that mortgage brokers, agents and brokerages are obligated to fully co-operate with FSRA's investigations and honestly answer FSRA's questions. Anything less undermines confidence in the entire industry and comes with significant consequences."
Gerstel and HTMC requested a hearing on July 6, 2023, before the Financial Services Tribunal (Tribunal).
The Tribunal found that Gerstel was not suitable to be licensed because he failed to cooperate with a regulatory investigation and repeatedly provided false or misleading information to FSRA in the investigation and on licensing applications, contrary to the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 and its regulations.
The Tribunal also held that the imposition of administrative penalties was appropriate because of Gerstel's "flagrant" failure to cooperate and "repudiation of FSRA's regulatory mandate and authority."
The Tribunal revoked the mortgage brokerage licence of HTMC because Gerstel, as principal broker, was not suitable to be licensed.
FSRA issued this order as a result of the decision of the Financial Services Tribunal in Harold Gerstel and Harold the Mortgage Closer Inc. v Ontario (CEO of FSRA), 2025 ONSF 20.
In addition, FSRA also issued a second Notice of Proposal concerning Gerstel and related entities on April 30, 2024. This second Notice of Proposal remains before the Tribunal.
For media inquiries:
Russ Courtney
Senior Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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