There has been a lot of discussion in the mortgage brokerage community over the last 2 years about the practice of sending in “dummy” mortgages to CMHC or Genworth for an approval before an offer to purchase is written. Professional and ethical mortgage agents do not get involved in this practice. As a realtor, if you ask for this to happen or knowingly are a part of this transaction, you need to be aware of this.
CMHC is actively investigating these instances and as I understand it, will take necessary action against those who go against the rules. As an Accredited Mortgage Professional, we need to have an ACCEPTED Offer to Purchase in order to proceed with an application. Sending in a mortgage application without it is bordering on fraud.
Realtors may not be aware of this and may become an unknowing party in this type of transaction. You are now officially aware and will be judged by who you associate with.
From one professional to another!