In the face of new mortgage rules that have materially impacted the channel, one industry executive is urging brokers to keep calm and carry on.
, president of Verico
, is sending a positive message to industry players in a letter sent to MortgageBrokerNews.ca.
You can read that letter below.
By now we’re well aware that we are collectively experiencing some major changes to the mortgage market place but we need to take some comfort in knowing that many of the industry major stakeholders have taken to major mediums to educate all those affected by the impacts of these policy changes and have also been in Ottawa voicing salient points on the matters at hand to educate policy makers.
I do not discount for a moment the materiality of these changes because they are dynamic changes that will call for the need to sharpen and adapt but I do not share the sense of gloom amid many participants for we have demonstrated ourselves to be pliable, adaptable, and resilient over the years.
Let's take a look at what's transpired since 2007 and it might give you solid reason to keep your confidence high and your chins up:
1. We’ve seen the worst credit crisis as a result of the subprime meltdown and literally had lenders shut down over night
2. LTV and Amortization policies changed immensely
3. CMHC premiums increased
4. Down Payment rules have been modified and increased
5. Anti-money Laundering Act combined with Know Your Client legislation dramatically changed the manner in which lenders underwrote mortgage deals
6. We’ve seen major lenders reel out of the broker channel. I.e. First Line and ING
So with all this, what do you think has happened? Let me tell you…
1. Brokers increased their market share by double digit growth
2. We’ve experienced record origination years in the past few years
We are industry participants with many questions and uncertainties. It only stands to reason that Canadian borrowers are feeling even more uncertain about what this means to them so let’s stay positive and demonstrate a collective leadership approach when the market place is calling for such a need. This is a wonderful opportunity to rally as an industry and to catapult our true value proposition as mortgage professionals.
We are resilient, my friends. Chin up.