A lawyer in Ontario is urging Teranet and other parties to make changes to rules which allow non-lawyers to register and discharge mortgages. Shayle Rothman of realestatelawyers.ca says that currently lawyers often appoint clerks or office staff to register or discharge mortgages but that this is a huge risk.
Rothman told lawtimesnews.com that actual numbers of frauds committed as a result of the rules are not easy to establish but he believes that there is a large amount of money involved.
He cites a case in Brampton, ON where a couple’s loan was discharged without the knowledge of the mortgage lender, by a company that was able to access the Teraview system. The couple then secured further loans which they later defaulted on. In response to Rothman’s letter the Ministry of Government and Consumer Services responded that it takes mortgage fraud very seriously and that title registry is of “paramount importance” to the province.
Rothman told lawtimesnews.com that actual numbers of frauds committed as a result of the rules are not easy to establish but he believes that there is a large amount of money involved.
He cites a case in Brampton, ON where a couple’s loan was discharged without the knowledge of the mortgage lender, by a company that was able to access the Teraview system. The couple then secured further loans which they later defaulted on. In response to Rothman’s letter the Ministry of Government and Consumer Services responded that it takes mortgage fraud very seriously and that title registry is of “paramount importance” to the province.
