RECA Corrects Suspension Information

An article in the Thursday, February 12, 2009, edition of the Calgary Herald and other provincial media outlets reported with respect to a Royal Canadian Mounted Police officer from Calgary who has been charged with mortgage fraud-related offences.

The article indicates that 400 realtors have been suspended in Alberta for committing mortgage fraud. The reporter was given this information as an estimate from a third-party source; however the reporter did not contact the Real Estate Council of Alberta to confirm this statistic.

As part of its mission, RECA creates consumer confidence and trust in the industry professional by protecting against, investigating, detecting and suppressing mortgage fraud as it relates to the industry. If an industry member is found to have breached the Real Estate Act and/or the Rules, that industry member may be suspended.

From July 1, 2005 to February 12, 2009, there have been 23 suspensions, which includes real estate, mortgage broker and real estate appraisal industry members. However, RECA does not track whether such suspensions are related to mortgage fraud and as such, is unable to provide statistics regarding disciplinary action that is related specifically to mortgage fraud.

In providing the appropriate numbers to the Calgary Herald, RECA also indicated that it regulates industry members. REALTORS® are limited to those individuals who are members of the Canadian Real Estate Association.

The Calgary Herald has printed a correction in today's newspaper.