Leading lenders on the recent mortgage rule changes

Leading lenders on the recent mortgage rule changes

Leading lenders on the recent mortgage rule changes Readers with delicate sensibilities be wary: There’s an F-bomb in this article.

There’s an old allegory about a frog that goes something like this.

Plop a frog into a pot of boiling water and he jumps right out; place him into a pot of cold water, slowly ratchet up the heat and he cooks to death.

At the recent Mortgage Professionals Conference in Vancouver, Jason Ellis, managing director, capital markets, at First National, invoked that very parable when speaking about the recent mortgage rule changes during a lender panel featuring four c-suite lender execs.

He compared mortgage brokers to the frog.

“We’re not the f*cking frogs,” he told the audience.

What Ellis was getting at was that despite the government’s best efforts to place “unintended” barriers in front of mortgage brokers, one policy change at a time, the industry won’t suffer the same end as the ill-fated frog.

The comment was met with a resounding round of applause from the audience. Much to the feigned chagrin of one Boris Bozic, who said he planned on dropping the weekend’s first f-bomb while on stage.

Don’t worry, though, Bozic had his opportunity to have his say.

“You are here because of MCAP, Merix, First National, and Street Capital … we’re in this together,” the erudite head of Merix told the audience.

And that was the overarching theme of the panel.

That these are challenging times, but that lenders have the backs of their broker partners.

“We’re all in this game for the long-term and having good qualifications for borrowers (is a good thing),” Ed Gettings, CEO of Street Capital, said. “We’ll work through. One thing about this industry – we’ve had tremendous change over the past 8 years (and the industry has adapted).”

However, the lenders all agreed the times ahead will be challenging for the industry.

But for their part, lenders seem willing to do what they have to do to continue offering all buyers a viable alternative to the big banks.

“We’ve been working on additional funding sources. We’ll continue to have a full suite of products; that’s the good news,” Mark Aldridge of MCAP said. “There will be pricing differentiation.”
 
5 Comments
  • Amber 2016-12-12 2:26:31 PM
    I was at the conference and felt very uplifted listening to these gentlemen.

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  • Bert Czombos 2016-12-13 9:55:21 AM
    Please remember to remember this time when the next federal election takes place please. While I certainly applaud the efforts of our industry to adapt - there is nothing that scares the leadership of a party more than being told that they've lost your vote. There is no "feel good" story here for the gov't. These over reaching changes aren't saving a whale or a rainforest or any of that. They have simply implemented policies that now reduce the size of the marketplace for all Canadians. Our insured mortgage market is sound, and did not need most of the changes we've had forced on us. So please - when customers complain about not being able to get a refinance loan or mortgages for their rental properties - let them know exactly who is responsible for that. Their elected federal government.
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  • nick 2016-12-14 8:28:56 AM
    sorry bert but these measures should have been implemented a long time ago. Home ownership is a privilege not a right . We mortgage brokers are putting some individuals into the housing market when infact they are not really ready with some of the challenges that home ownership entails. Stress tests should have been implemented long ago . Infact the debt servicing ratios allowed have been in place for over 30 years while personal income tax has increased over the same period. Using gross figures to calculate debt servicing is a very dangerous game . Why not just decrease the debt servicing ratios all together and the same result would occur.
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