Following Home Capital's suspension last week of 45 of its mortgage brokers over allegations of falsifying information regarding borrowers incomes, the Royal Bank of Canada (RBC) and the Bank of Montreal (BMO) are facing questions as to whether they too have inadvertently given home loans to risky borrowers. Only B.C.’s Fraser Valley posted a bigger jump. The two banks were among a group that was suspended by Canada's banking regulator in late November after it found evidence that some of their employees had been involved with fraudulent loan applications.
Following Home Capital's suspension last week of 45 of its mortgage brokers over allegations of falsifying information regarding borrowers incomes, the Royal Bank of Canada (RBC) and the Bank of Montreal (BMO) are facing questions as to whether they too have inadvertently given home loans to risky borrowers. The two banks were among a group that was suspended by Canada's banking regulator in late November after it found evidence that some of their employees had been involved with fraudulent loan applications.