Kelowna mortgage broker who forged paperwork to cover up mistake fined $35,000

A Kelowna mortgage broker who forged paperwork to cover up a mistake has been fined $35,000.

According to a Nov. 20 BC Financial Services Authority decision, mortgage broker Graham Campbell “panicked” when he realized he’d failed to lock in an interest rate for a client, but instead of coming clean, he altered a different pre-approval certificate and added his client’s name.

The issue only became apparent when the client called the lender and was told there wasn’t a mortgage approval with their name on.

The decision said Campbell was contacted by a first-time homebuyer in early 2023.

Campbell told the client he’d secured a 4.89% interest rate, and it would be valid for several months.

Three months later, the client found a place for $480,000 and put an offer in, subject to financing.

The mortgage broker then realized he hadn’t submitted the paperwork to hold the interest rate, and he’d been looking at another client’s file.

However, he didn’t own up to it.

Instead, he spoke to the client telling them that more financial information was needed and saying their file was under review.

“He did this knowing it was not true, and he did not tell (the client) that the rate hold application had not been submitted,” the regulator said. 

He then got financing approved at the slightly higher rate of 5.14% and asked the client to request an extension for the subjects to be removed.

She didn’t get the extension and had the subjects removed. The client then asked for a copy of the pre-approval certificate.

Campbell then gave the client a pre-approval certificate containing a different mortgage number, but in the client’s name.

“Mr. Campbell had altered an existing pre-approval certificate respecting a different client to make it appear as if it was related to (his client),” the decision read.

Days later, the client contacted the lender directly and was told there was no record of any mortgage application in her name.

The client then complained to the regulator.

The decision said Campbell offered to pay the difference between the rate he told the client he’d gotten and the one he did, which was around $5,500.

He also emailed the client and admitted his mistake and offered to do more to rectify the situation.

Campbell told the regulator that when he realized he hadn’t submitted an application to secure the lower interest rate, he “panicked” and tried to come up with a solution.

“He admits that his actions in misrepresenting the rate hold after realizing he had not secured it, and subsequently altering a pre-approval certificate, were a complete lapse in judgment on his part,” the decision read.

The decision said Campbell fully cooperated with the investigation and “demonstrated accountability and remorse” for his conduct.

“Mr. Campbell has since implemented updated administrative processes and is operating with improved dedicated compliance support,” the regulator said.

Campbell signed a consent agreement admitting to his behaviour and agreed to pay a $35,000 fine plus, $2,500 costs.