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Mortgage Broker News | 10 Nov 2014, 10:38 AM Agree 0
Many brokers and industry pundits alike believe the CMHC has strayed too far from its roots and one player believes the Crown Corporation should never have entered the securitized mortgage market.
  • Angela Wong-Liao - Invis | 10 Nov 2014, 12:07 PM Agree 0
    CMHC was founded and established after World War II to assist Canadians in home ownership, its time to go back to the basic.
  • LanceH | 10 Nov 2014, 02:34 PM Agree 0
    I agree Angela. My real concern if they do so, is that they do it right, and things don't go from bad to worse, as "dozens of ideas" fly around the halls of politics, ie, the talk of privatization, yet still backed by the Gov. That is a recipe for disaster!!! We have to acknowledge, that once a company - private or gov - gets "too big to fail", selling it won't change that designation, so we might as well keep it and the avg 2B / yr profits, which are better in Gov coffers than that of private individuals, and simply shed some of the excess role it's taken on.
  • Daryl French | 12 Nov 2014, 11:59 AM Agree 0
    Many seem to want to toss the baby out with the bath water, yes CMHC needs to be tweaked, but going back to what it was decades ago makes no sense. Is Apple what it was when it was founded? Corporations need to grow and change with the times and seek out opportunities in new markets or die.

    We have a crown corp that is actually profitable, lets celebrate this and see how to move forward within some clearly defined boundaries.

    If the securitization market creates more competition the end consumer will win. So lets take a look at how CMHC can be a part of this within tolerable risk levels???
  • Paul Therien - CENTUM | 12 Nov 2014, 03:25 PM Agree 0
    A lot of good points made here, and with recent changes we have already seen CMHC move towards their original mandate.

    CMHC is a Crown Corporation true, but they should also be applauded for being a profitable one. Too many crown corps are run as unprofitable ventures and end up being a burden on the tax payer. That being said, we talk about CMHC being "out" of securitization to protect tax payers... does that suggest then that people also think that the government should not offer guarantees to Genworth or Canada Guarantee? remember, these are "private" companies that receive 90% backing from the government.

    CMHC playing a part in this market also allowed our government and regulators direct oversight on quality and risk tolerance. Something that in 2008 and beyond served us very well to protect us from the collapse. Something that countries around the world are still trying to recover from.

    I agree with Daryl, let's not throw the baby out with the bath water.
  • Ron Butler | 12 Nov 2014, 06:50 PM Agree 0
    I am with Daryl and Paul on this one. In 2008 without CMHC's intervention in the mortgage market we like would only have one or two monoline lenders here today and likely only two banks working with brokers. We could have been down to just a handful of lenders and we all know what that would mean in terms of competitive mortgage rates for Canadians.

    It is reasonable to try to achieve a good balance in the securitization market but CMHC has been doing too good a job for too long to go back to the 50s.
  • Moray tawse | 13 Nov 2014, 07:42 AM Agree 0
    No Securitization, no mortgage banks, no competition for the big 5 banks, no need for mortgage brokers. Have you been around long enough to remember when the brokerage share of the market was about 3% That was before securitization gave brokers a competitive product to sell against the banks.
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