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Mortgage Broker News | 06 Aug 2013, 12:00 AM Agree 0
It may be that other shoe brokers have been waiting to drop, with CMHC announcing it will now limit each lender enrolled in its mortgage-backed securities program to $350 million in guarantees for August.
  • Ron Butler | 07 Aug 2013, 07:23 AM Agree 0
    There is some uncertainty which lenders will feel the impact the most. I think rates will rise slightly but the folks on the treasury / investor side of our lenders are pretty smart folks who will be looking for alternatives as the covered bond market seems more active recently (admittedly at slightly higher costs) and there will also likely be some variation from lender to lender depending on whether they can fund all their mortgages from their CMB allocation. Conversely many of the biggest mono-line players use Big 6 bank money and the Big 6 will definitely feel the effects of this change. It may take some time to find out how this change plays out. Realistically the era of incredibly low rates is likely transitioning to pretty low rates.
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