About Us

FAAN Mortgage Administrators Inc. (“FAAN Mortgage”) is a dedicated team of finance professionals and is a licenced mortgage administrator under Ontario’s Mortgage Brokerages, Lenders, and Administrators Act, 2006. (FSCO Administrator Licence Number: 12995)

UPDATES AND COURT MATERIALS RELATED TO BDMC

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 Canada Inc. (”BDMC”) under section 37 of the Mortgage Brokerages, Lenders and Administrators Act, 2006, as amended, and section 101 of the Courts of Justice Act, as amended.

For clarity, the Trustee is not appointed over any of the projects with syndicated mortgage loans administered by BDMC.

On June 26, 2018, the Court issued an order (“Interim Stabilization Order”), which, among other things:

  • Clarified and confirmed the Trustee’s rights and responsibilities under the Appointment Order in respect of certain funds held by the Trustee that are subject to a Court-ordered priority charge and put temporary restrictions on the Trustee’s rights with respect to those funds during the stabilization period; and
  • Appointed Chaitons LLP as representative counsel to represent Investors in these proceedings.

A copy of the Interim Stabilization Order and the materials filed in connection with that order, including the Trustee’s first report to Court dated June 19, 2018 (“First Report”), is available below.

On October 23, 2018, the Trustee served materials in connection with its motion returnable October 30, 2018, which provides among other things, an update on developments in these proceedings since the First Report, including:

  • The in-depth project analyses being undertaken by the Trustee;
  • Projects subject to significant developments, including enforcement proceedings and negotiations for early payouts; and
  • The Trustee’s recommendation regarding certain the funds maintained by the Trustee currently or received in the future, including (i) directing the Trustee to distribute certain of the funds and (ii) authorizing the Trustee to use the remaining amounts to fund the costs of required Trustee activities associated with the administration of the estate, subject to a fair and equitable allocation of such costs at a future date.

Copies of the materials filed on October 23, 2018, including the Trustee’s Second Report, are available below.

On October 30, 2018 the Court issued an order (“Realized Property Order”), which, among other things:

  • Directs the Trustee to distribute certain of the funds;
  • Authorizes the Trustee to use the remaining amounts to fund the cost of required Trustee activities associated with the administration of the estate; and
  • Requires that the Trustee report to Court no later than April 30, 2019 regarding the required Trustee activities undertaken following the date of the Realized Property Order.

A copy of the Realized Property Order is available below.

On November 19, 2018, the Trustee served materials in connection with its motion returnable November 28, 2018, which provides , as the case may be, among other things:

  • A recommendation that the Court grant an order approving a settlement offer made by the Baestone borrower in respect of the Braestone loan advanced by BDMC;
  • A recommendation for certain amendments to the Realized Property Order requiring the Trustee to make a further distribution of Realized Property to all SMLs entitled to such Realized Property following the closing of the Braestone settlement; and
  • Information regarding the Trustee’s and its legal counsel’s fees and disbursements from the date of the Appointment Order through to September 30, 2018 (“Period”).  The Trustee is also seeking the Court’s approval of the First Report, Second Report, the Third Report, the activities described in each of the Reports, and the professional fees of the Trustee and its legal counsel for the Period.

Copies of the materials filed on November 19, 2018, including the Trustee’s Third Report, are available below.

On November 28, 2018 the Court issued an order (“Braestone Settlement Approval Order”), which, among other things:

  • Approved a settlement offer made by the Baestone borrower in respect of the Braestone loan advanced by BDMC;
  • Directs the Trustee to make a further distribution of Realized Property to all SMLs entitled to such Realized Property following the closing of the Braestone settlement, and to distribute 80% of Realized Property going forward; and
  • Approved the activities of the Trustee set out in the First Report, Second Report, Third Report and approved the fees and disbursements of the Trustee and its legal counsel from the date of the Appointment Order through to September 30, 2018.

On December 13, 2018, the Trustee served materials in connection with its motion returnable December 20, 2018, which provides, among other things:

  • A recommendation that the Court grant an order approving a settlement offer made by the Harlower borrower in respect of the Harlowe loan advanced by BDMC; and
  • A recommendation for certain amendments to the Realized Property Order requiring the Trustee to make a further distribution of Realized Property to all SMLs entitled to such Realized Property following the closing of the Harlowe settlement; and

Copies of the materials filed on December 13, 2018, including the Trustee’s Third Report, are available below.

Below are links to questions frequently posed to the Trustee regarding its mandate and BDMC:

Frequently Asked Questions - July 17, 2018
Frequently Asked Questions - April 25, 2018

The materials filed by the Superintendent and the Trustee in connection with these proceedings, including the Appointment Order, are available by clicking on the links below:

Most Recent

Motion Record of FAAN Mortgage Administators Inc. (Dec 13 2018)
Endorsement of Hainey J. dated November 28, 2018
Issued and Entered Braestone Settlement Approval Order dated November 28, 2018
Third Report dated November 19, 2018
Motion Record of FAAN Mortgage Administators Inc. November 19, 2018
Realized Property Order dated October 30, 2018
Endorsement Re: Realized Property Order dated October 30, 2018
Motion Record of the Trustee returnable dated October 30, 2018
Second Report of the Trustee dated October 23, 2018
Endorsement re Stabilization Order dated June 26, 2018
Order re Interim Stabilization Measures and Representative Counsel Appointment dated June 26, 2018
Motion Record of the Trustee returnable June 26, 2018
First Report of the Trustee dated June 19, 2018
Appointment Order dated April 20, 2018
Application Record returnable April 20, 2018
Book of Authorities dated April 19, 2018
Factum of the Applicant dated April 19, 2018

Documents Related to the Brookdale Sale Approval Motion Returnable October 18, 2018:

Issued Notice of Application of Firm Capital Returnable October 18, 2018
Report of the Receiver dated October 2, 2018
Application Record of Firm Capital Mortgage Fund Inc. for the Motion Returnable October 18, 2018

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