OSFI’s final B-20 and B-21 underwriting guidelines left some unanswered questions, especially on validating income for self-employed (a.k.a. business for self, or BFS) borrowers.
For enlightenment, we connected with OSFI to clarify three specific points.
Since mid-2013, Scotiabank and First National have been locked in a horse-race for the title of “top broker channel lender.” In our last report, First National had snatched that crown from long-time front-runner Scotiabank . And now, the latest data shows Scotiabank winning back its crown, at least according to D+H numbers.
Sure, you paid out the nose in interest charges and assorted bank fees this year, but take comfort in knowing that you helped pad the Big 6 Banks’ bottom lines—to the tune of $33 billion of net income in 2014.
That enabled Canada’s banks to post a reasonably strong year, despite a modest spring housing market and the continued low interest rate environment.
On the mortgage end of things, loan losses were down and most of the majors saw their ratio of insured mortgages fall—not surprising given Ottawa’s push to de-risk its mortgage exposure. As of October, banks had grown their mortgage books by 4.8% year-over-year.
As we do every quarter, CMT has dug through the Big 6 Banks’ quarterly earnings reports, presentations and conference calls, and pulled together these mortgage tidbits. The more notable observations are in blue.
Tis the season once again. This year, lenders will be closed on:
- Thursday, December 25
- Friday, December 26
- Thursday, January 1
From everyone in the CMT family, may you and yours have a relaxing, warm and cheerful holiday season.
This week, the U.S. central bank put the world on notice that rate hikes are coming, possibly as early as spring.
While we shouldn’t hold our breath on that, it does raise one important question: How will the Bank of Canada respond if the U.S. does boost interest rates?
The answer is far from certain, but one thing can be said with confidence: the BoC will not respond in knee-jerk fashion.
Here’s why, and what it means for mortgage holders:
We got a new profile of insured mortgage borrowers last Wednesday. It came from Genworth Canada’s Investor Day where the company briefed shareholders on the its current risk profile.
The nation’s second-largest default insurer says government changes have made its portfolio “much more resilient to any sort of housing correction or external shock,” and the facts that follow seem to back that up:
Since 2008, the Finance Department has announced one mortgage restriction after another, largely in an effort to wean lenders from government support. And just when you think there’s no more regulations to come, they tighten further.
The latest such measure came last week. On December 1, CMHC announced hefty fee hikes for guaranteeing mortgage-backed securities (MBS). And these are no piddly fee hikes. We’re talking 50-200% increases for government guarantees of MBS, and a 100% increase for Canada Mortgage Bond guarantees. That’s material given that roughly one-third of mortgages are funded by securitization.
Here’s why the powers that be are doing it, and what it could mean to mortgage consumers:
Bridgewater Bank recently unveiled its “Gateway” product, a conventional mortgage for homeowners with credit and/or income provability issues. It’s meant to be short-term financing (one to three years) until a borrower can qualify for better-priced long-term financing.
Todd Poberznick, AVP B2B Solutions, provided these details:
Last week, Montreal played host to CAAMP’s Mortgage Forum 2014, one of the mortgage industry’s most important gatherings of mortgage professionals. Dubbed by some as “a networking event on steroids,” the event played host to 1,200+ attendees. It also included 65 booths at the two-day Expo and 525 attendees at the Hall of Fame/Awards Night — both excellent showings by historical standards. In case you missed the event, here’s a roundup of conference highlights:
Here’s part II of our coverage of CAAMP’s Broker Panel from last week.
Once again, the panel featured four mortgage pros sounding off on lenders, regulations, broker technology and more. They were…
- Ron Butler from Butler Mortgage
- Dan Eisner from True North Mortgage
- Peter Majthenyi from Mortgage Architects
- Mathieu Lebrun from Multi-Prets Hypothèques
Here’s what they had to say: