In a significant development with potential ripple effects across Canadian mortgage lending, two of Canada’s largest banks—Toronto-Dominion Bank and Bank of Montreal—have been named in a US Office of the Comptroller of the Currency (OCC) debanking probe. The investigation examined nearly 100,000 complaints and found that major banks maintained policies denying financial services to customers based on political beliefs or lawful business activities between 2020 and September 2025. The OCC identified broad, poorly defined reputation risk policies as the primary culprit, affecting sectors including energy, firearms, and digital assets. For GTA mortgage brokers, this matters significantly: TD and BMO are major lender partners in the broker channel, with TD acquiring nearly 50% of its broker-sourced customers as new clients. As US policy shifts have historically crossed the border, brokers with clients in affected sectors should monitor potential policy changes. The OCC has signalled it may implement further regulatory changes. Read the full analysis at the original source for detailed implications.
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