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Those loans were affected by “documentation issues and client misrepresentations,” which the bank uncovered through an audit, according to the bank’s management discussion and analysis for the fiscal year ended Oct. 31, 2017.

Laurentian says it has also repurchased another $91 million in mortgages that had been “inadvertently sold” to the third party. The problems that led to the mistaken sale “have been resolved,” the document said.

But Laurentian also disclosed last year that, after expanding the scope of its audit, some mortgages had been “inadvertently portfolio insured” when they may not have actually been eligible for coverage. The bank said it had sold $76 million of these mortgages to another buyer.

The bank said in its prospectus supplement that the other third party buyer had “confirmed” to Laurentian the loans in question, as well as another $12 million in mortgages, “are no longer eligible for portfolio insurance.” Those “ineligible” loans would also be repurchased before the end of its second fiscal quarter, putting the total repurchase target “in the range of $392 million,” a Laurentian spokesperson said in an email.

The affected mortgages, however, are but a sliver of the $36.7-billion portfolio of loans and acceptances Laurentian held as of the end of its fiscal 2017. The 172-year-old lender also said that the fallout from the buy-backs would not cause a material impact to its operations, that no employee had been involved in any misrepresentations, and that any paperwork problems “appear to have been unintentional.”