CAAMP’s campaign encouraging brokers to speak out against possible mortgage rule changes is beginning to bear fruit, as an Ontario brokerage has added its voice to the growing lobbying effort.
Syndicate Mortgages released a national press statement backing CAAMP’s suggestion that tightening mortgage and housing policies will adversely affect brokers, buyers and the economy.
“The industry has been seeing a lot of changes that have only done harm. We’re not, as brokers, uniting as we should be and we’re not speaking out,” says Syndicate Mortgages CEO Marcus Arkan.
In a message to its members, CAAMP says mortgage volume has decreased in the last two years due to tightening of lending criteria and if the market becomes stricter it will weaken the housing market and have a direct effect on the economy.
While the new polices will result in a rise in housing value, it will also trigger a rise in consumer spending. CAAMP also warns policy makers about making changes that will ultimately reduce consumer’s ability to pay their mortgages.
People in the industry were already moving on to other careers or going part-time because they could not compete with the banks, Arkan says.
“CAAMP is currently playing the voice of the industry,” Arkan says in his release. “Economists and officials must understand that the biggest threat to the industry is the recession we will have to face due to job loss.”
Syndicate backed CAAMP’s statements that the real estate market was an economic driver, accounting for eight per cent of Canadian jobs and 18 per cent of job creation since 2006.
“We were 40 per cent of the market, now we’re 25. We’re a dying breed and if we don’t stand up and try to speak up for the industry, who’s to say we’re not going to be extinct shortly? Then the only place to get a mortgage will be the banks and Canadians are not going to be able to get competitive rates if brokers are not in the market,” Arkan says.
Arkan told Mortgage Broker News about 30 per cent of his clients had been affected by tightening rules, with investors and self-employed people affected the most.
“It hurts small businesses. It’s basically a domino effect where we’re going to see the crisis happen not now, but down the road.”