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Mortgage Broker News | 29 Oct 2009, 12:11 PM Agree 0
The Canadian real estate market has made a rapid recovery, with prices soaring above previous years' levels and affordability dropping to below historic averages, causing everyone in Ottawa to worry that perhaps the market is too strong. The Financial Post thinks that CMHC may be to blame
  • Dave Walterson | 30 Oct 2009, 03:51 AM Agree 0
    Mainstream media sensationalizes everything in order to gain even the smallest amount of attention. Regardless of the story, our 24/7 news cycle has become, in reality, Chicken Little. Is there anything you have read/heard/seen lately that is not wrapped in "the world is coming to an end"? Pick any topic. The point of the story mentioned above is to find a villian; somebody has to take the blame.
  • Daniel McKay | 30 Oct 2009, 04:19 AM Agree 0
    I agree 100% percent with Dave's above comment. Here's my suggestion to mainstream media. If you would like to increase your sales some more by only writing about negative stories that promote fear and boost sales, feel free to write a story and put this headline in large bold print "Responsible Journalism is Dead"
  • John | 30 Oct 2009, 05:41 AM Agree 0
    I would suggest that the Financial's Post's reporter do more research on the subject before submitting such an outrageous hypothesis. If anything its the opposite. CMHC has acted as a prudent Government run insurance company. If anything they have held our real estate market in check and not allowed it to spiral out of control. The tend to underwrite their loan insurance in a conservative manner and rely on the lender to be prudent and check for falsified information. Last time I checked, CMHC was still a Crown Coporation and Freddie and Fannie were privately held bankrupt corporations.........
  • Kelly Rowe | 30 Oct 2009, 05:42 AM Agree 0
    I concur. As someone who works in this industry, I can assure you CMHC is not giving away the farm. They have pretty stringent guidelines. As a broker I'm not always all that happy with them. BUT! the fact that this year is better than last is a good thing and shouldn't have been difficult to do. I say "Yeah!" the economy is slowly improving, what's wrong with that!
  • Brian Matthey | 30 Oct 2009, 05:47 AM Agree 0
    Lets finally see a journalist back a comment up with facts instead of sensationalized speculation.The facts are that Canada/CMHC and lending institutions here have always maintained higher lending standards than many other governments and continue to do so in the environment coming out this recession.Our recovery speaks to the high road that we take here in Canada on credit.Low interest rates are market driven not mandated by CMHC.Housing prices are dictated by supply and demand.
  • John Martin Mokrenko | 30 Oct 2009, 07:36 AM Agree 0
    Diane Francis is an employee of a company that has just recently filed for protection from its creditors if she wants to write about something constuctive she should write an article about how all the many investors have lost a fortune in investing in a company that pays her a lot of their money for writing and personally commenting on an irresponsible, deliberate, negative in nature artcle for which she obviously knows nothing about...Do your employer at the very least a favour....Retire?
  • RJD | 06 Nov 2009, 05:10 AM Agree 0
    Of course all you commenters are going to downplay Diane's article. You make your money off pushing mortgages and the easier that is the better.. Instead of whining, prove it otherwise.

    By the way - non-MSM has been on this issue for months.
  • Dan | 11 Nov 2009, 02:51 PM Agree 0
    Come on guys the facts are the facts and your are just the salespeople and cheerleaders. You are salespeople, now commonsense is lost on people who want to believe in something so much that it has to be true at all costs, even the truth itself. This is not sustainable, interest rates will go up and defaults will occur, the employment situation is worsening, you need two people with full time jobs, the real estate market in Vancouver is higher due to the competition between non kid couples and same sex marriages. At least check into both sides of the argument.
  • I like facts, too | 16 Nov 2009, 09:53 AM Agree 0
    The problem is not CMHC's "guidelines" for insuring mortgages. Nor is it the Bank of Canada's low target for the overnight rate. The problem is the rapid expansion of the CMHC's securitization schemes: the NHA MBS and the CMBs. As of August 2009, CMHC had insured $277 billion of NHA MBS. Its subsidiary, Canada Housing Trust, had purchased $167.5 billion of them by issuing CMBs to large public and private financial institutions. Most recently, through the IMPP, the CMHC has purchased another $68.8 billion of NHA MBS.

    These programs directly benefit mortgage lenders in Canada by removing loans from their balance sheets and reducing the cost of funding by around 18 basis points. The CMHC claims these programs also benefit borrowers, since the big banks have got to pass on some savings to their customers. According to KPMG, the "savings" for an average borrower is three basis points at most. Statistical analysis shows no significant relationship between the CMB program and lower spreads on mortgage loans.

    However, just as the CMHC's guidelines and the BoC's target rate are red herrings, so are discussions that equate "affordability" or "low-cost mortgages" with low rates. Such discussions ignore two of the three factors that determine the real cost of mortgages: principal and duration. By directly injecting around $240B and providing the NHA MBS guarantees that attracted another $40B into the domestic mortgage market, the federal government has greatly inflated prices for residential real estate. By increasing the amount of credit available (and assuming most of the credit risk by allowing the banks to purchase insurance on any mortgage - CMHC insurance is mandatory for LTVs above 75%, but the banks have been buying it for all sorts of loans in order to sell them into NHA MBS), the CMHC has encouraged lenders to compete by lending more and enabled buyers to compete with each other by borrowing more.

    Until we grapple with facts like these (and there are many more troubling aspects to the real estate "recovery"), discussions about the prudence of CMHC, the health of Canadian banks and the state of our housing markets are moot.
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  • sandratn | 31 Mar 2011, 04:28 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:28 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:28 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • sandratn | 31 Mar 2011, 04:29 PM Agree 0
    Dow slumped 138 points yesterday. I read by next week it will lose another 500! That blows.. I am already on my way to being broke.. anyone know a good bankruptcy attorney?
  • Figinnome | 03 Apr 2011, 10:52 AM Agree 0
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