Banks leaving brokers high and dry

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Brokers on both sides of the country are reporting fewer options for mobile home mortgages – and missing out on potential business as a result.

“In our area, one of the frustrating things is trying to fund mortgages for mobile homes; there are only a couple lenders who will do them,” Derek Sherbinin, a B.C.-based broker/owner of Centum Mortgage Store told “Most just aren’t interested and I don’t know what it is; lenders have really shied away from them in the last year-and-a-half.

According to Sherbinin, there are fewer options for mobile homes, as several lenders have pulled out of the segment.

For his part, Jonah Wright, a mortgage consultant with Mortgage Intelligence in Nova Scotia, once relied on these deals as a major part of his business. That’s no longer the case. Especially considering the banks seem to have more options for these clients.

“Banks have an advantage over brokers for this market,” Wright said, noting that several of the big banks offer mobile home mortgages through the respective branches but not through the broker channel.

Wright says he has shied away from these deals and has had to turn clients away or, in some cases, send them directly to the banks.

And those deals he is able to fund often come at a higher cost to the client.

“I got a deal done a few weeks ago and my only option was to go through a credit union,” Wright said. “And they couldn’t offer the most competitive rate.”
  • Joe on 2015-10-29 9:41:56 AM

    Would you lend your own money to a mible home? I wouldn't...

  • John Martin on 2015-10-29 9:56:12 AM

    Joe is a typical person with what's known as tunnel vision. There is absolutely nothing wrong with funding these mobile homes for the good people who live in them. Like every thing else it depends on all the details that come with it. Fund these homes I say. No reason not to.

  • Ron Butler on 2015-10-29 10:36:52 AM

    Honestly, let them have mobile homes, which is a sliver of a market, they don't let us sell SLOCs in second position and that is a jillion dollar market. We should focus on access to SLOCs

  • kac on 2015-10-29 1:01:50 PM

    not sure i agree with Ron's opinion. In certain markets it is rare to find a mobile/modular on its own land on a concrete foundation and in other markets these are quite common place and represent a lot of mortgages and good business. There is no more risk at a bank funding this type mortgage through the broker channel as there is through the banking channel. I understand that a 20 year old mobile home on a rented pad is not the most lucrative,however a mobile/modular in good condition on it's own land represents good mortgage security. Our business channel has become so limited we as brokers are really not able to facilitate a full service to the public we are a one trick pony unfortunately with very limited suppliers and products. When i review the daily e-mails sent from the monolines there is little to choose from,different colours on their e-mails however they are all basically the same. Oh how the industry has changed in the past few years,15 years ago brokers could offer no more than 2nd mortgage or private mortgages and then for a number of years the suppliers were far more,wanted our business and offered products that we could compete with the individual banks,we are very close to turning full circle.

  • Walid Hammami on 2015-10-31 3:48:34 PM

    It's not really about mobile homes. We need to see the bigger picture. We should have access to a variety of products. That's part of our value proposition. Client don't need to shop around all they need is come and see us and we will find the right product for them.

  • P.r. on 2015-10-31 4:14:01 PM

    Buying any home - landed - is the issue. The mobile home must be landed. That said: verification based on income. 100,000 mobile home - can't be mobile . Must be landed. So, qualify the client and choose a better option . You are supposed to be creative financiers not cherry pickers.

  • Bob Urbanovitch on 2015-11-01 2:36:22 PM

    If the client is at least 55 years old, we lend on mobile homes (as long as the mobile is on it's own land) across Canada!

  • Suzanne Anderson on 2015-11-02 11:32:01 AM

    I am not a mortgage broker, but a real estate agent with RE/MAX in Fort McMurray & this discussion interests me. In our housing market, this issue is common. Most of the homes that have been financed in the past by big banks, are now being turned down. We have manufactured homes and modular homes on steel foundations (not mobiles) and then we have mobile homes that are tied to the land, and all of our clients in these situations are selling with the land. In all these circumstances, it is tough for a buyer to get financing. I am wondering if there is a better way to package these homes, so a lender understands that they are not a "mini or a mobile home" as that stigma is attached to many homes, that are not mobile homes. We as agents are always looking for good brokers that can recommend or have a channel to get these deals done, as this is a big part of our market.

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