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Mortgage Broker News | 17 Oct 2016, 08:15 AM Agree 0
New rules will buttress Canada’s housing industry against variegated risks, CIBC head says
  • Geoff Lander | 17 Oct 2016, 10:01 AM Agree 0
    Anyone else find it curious that all of the big banks seem to support the changes while the mortgage brokerage industry has expressed serious concern based on a more realistic view of the actual fall out of the changes? hmmm.....
  • Ron Butler | 17 Oct 2016, 03:39 PM Agree 0
    The truth is the banks have more to worry about in a housing market reversal, let's face it: they hold the mortgages. The stress test at 4.64% is a very necessary evil. The phrase that bugs me is: "make sure the tax payer is not on the hook to support financial institutions" but it is okay for the taxpayer to support Automakers and Bombardier and green energy, on and on and actually LOSE money in some cases but when it comes to mortgage insurance when all that has ever happened for 4 decades is that money has been made for the tax payer and massive reserves established against any future claims.

    I am not suggesting that governments should not take serious action to correct a housing bubbles but let's not pretend a system of mortgage bulk insurance that has worked flawlessly so far is way too risky to continue. The insurers own internal stress tests prove their reserves are more than adequate so could it be a bank CEO who is encouraging the end of bulk insurance may actually have his own agenda.
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