FAAN Mortgage Administrators Inc. (“FAAN Mortgage”) has been engaged by Building & Development Mortgages Canada Inc. (“BDMC”), in consultation with the Financial Services Commission of Ontario (“FSCO”), to assume responsibility for the management of all BDMC’s mortgage administration duties in respect of the syndicated loans for which BDMC acts as Administrator under Ontario’s Mortgage Brokerages, […]
On April 20, 2018, pursuant to an order of the Ontario Superior Court of Justice (Commercial List) (“Appointment Order”), FAAN Mortgage Administrators Inc. (“FAAN Mortgage”) was appointed as trustee (“Trustee”) over all of the assets, undertakings and properties of Building & Development Mortgages Inc. (”BDMC”). The Appointment Order was issued following an application made by the Superintendent of Financial Services pursuant to section 37 of the Mortgage Brokerages, Lenders and Administrators Act, 2006, as amended, and section 101 of the Courts of Justice Act, as amended.
Please note that since February 2018, FAAN Mortgage has been engaged by BDMC as part of a settlement between the Financial Services Commission of Ontario and BDMC to assume responsibility for the management of all BDMC’s mortgage administration duties in connection with certain syndicated mortgage loans (“BDMC SMLs”). As a result of the Appointment Order, FAAN Mortgage will continue to manage the administration of the BDMC SMLs, however now it will be in its capacity as Trustee.
For clarity, the Trustee is not appointed over any of the projects with syndicated mortgage loans administered by BDMC (“Projects”). FAAN Mortgage, as Trustee, continues to review the status of the Projects and the BDMC SMLs, and to communicate with the developers/borrowers to understand project timelines and potential outcomes for the BDMC SMLs. As relevant information becomes available, the Trustee will continue to keep lenders apprised of the status of their BDMC SML, including the underlying Project, by sending notices and other communications directly to lenders and/or by posting notices to this website, as appropriate.
The Trustee will be writing directly to the lenders regarding the Appointment Order shortly.
The materials filed by the Superintendent in connection with its application for FAAN Mortgage’s appointment as Trustee, including the Appointment Order are available by clicking on the links below: