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Mortgage Broker News | 26 Nov 2015, 08:15 AM Agree 0
A leading alternative lender believes the unregulated mortgage market will grow in 2015
  • Chad | 26 Nov 2015, 09:59 AM Agree 0
    It is not unregulated! There are a ton of regulations. Not as much as banks but to call it in regulated is false.
  • Len Lane | 26 Nov 2015, 10:47 AM Agree 0
    I guess that they don't understand that pooling two guy's money together would constitute a syndicated mortgage and that is even more highly regulated by Security commissions.
  • G | 26 Nov 2015, 11:58 AM Agree 0
    "you and I could pool our resources and go lend some guy for a mortgage – that I would say is the shadow industry that is completely unregulated."

    Balderdash!

    As one of those "shadow" lenders in Ontario for 27 years, this is far from an "unregulated" market.

    All applications must come through a mortgage broker or solicitor. Last time I looked, both of those intermediaries are strictly regulated. In addition, we require all mortgagors to have independent legal representation regardless of the amount of the mortgage. As well, there is a little something called the Interest Act of Canada (http://laws-lois.justice.gc.ca/eng/acts/I-15/FullText.html) and provincial courts which can enforce equity in cases of lender abuse, "shadow" or institutional.

    As well, though I can only speak for my company, our mortgages do NOT have the open ended charges and penalties that are rife in some of the largest alt B lender's documents I have seen.

    BTW, the "abuse" I have most often encountered has been from mortgage brokers who charge 10%+ of the mortgage amount for their services. Legal, but really??

  • Kuldip S Panesar Homeland Mortgage Corp. | 26 Nov 2015, 03:11 PM Agree 0
    When the financing through Mortgage Broker then it is fully regulated.
  • Paul D @HomeOwnershipSolutions.org | 27 Nov 2015, 10:25 AM Agree 0
    If you're convincing a guy to pay 25% to fix his windows then you are certainly not dealing with me as a lender. You are either an inexperienced agent dealing with an unscrupulous lender, or you and the lender are dishonest. There are those of us, like G above, who are correctly described as not directly regulated, but we work only through regulated individuals and choose to behave as regulated entities. Sometimes there is more credibility and less 'shadow' on a person who chooses to behave as if he were regulated, than a MIC who is forced to be. With the growth in the Private Lending space it is incumbent on those of us who are forthright to deal with the trustworthy and transparent and shun the shadows, to keep improving the image of our industry.
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