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Mortgage Broker News | 04 Oct 2016, 04:03 PM Agree 0
One monoline lender has sent brokers a list of changes as a result
  • Dave | 04 Oct 2016, 04:13 PM Agree 0
    I think you mean "wont be the last"

    Ok fellow brokers, any bets on which shops will fold by the end of year ? Also, was this a move by the banks (ahem) government to squash competition?
  • Lender | 04 Oct 2016, 04:15 PM Agree 0
    First national went first. And pulled rentals yesterday and BFS ...and increased their conventional rate significantly
  • Mortgage Guy | 04 Oct 2016, 04:16 PM Agree 0
    more reason to stay in private financing and give everything to the banks.
  • Hal | 04 Oct 2016, 04:19 PM Agree 0
    I don't think Trudeau or Morneau are smart enough to try and squash the competition even if they wanted to.

    I think that someone lobbying for the banks got to Morneau though and did their job. I feel bad for the Monolines. This is going to hurt them.

  • Jay | 04 Oct 2016, 04:25 PM Agree 0
    Talk about removing competition from the market place. Monolines are doomed if this policy is not amended... I guess the mortgage sales force will increase and the broker channel will decrease substantially...
  • T. | 04 Oct 2016, 04:35 PM Agree 0
    The Big 5 were the ones that suggested this change to the DoF - John Webster, SVP of Real Estate Secured Lending for Scotiabank was quoted by Steve Huebel and Rob McLister as saying at the Financial Summit:
    "Lenders have [suggested] to [the Department of] Finance and OSFI that we would be willing to undertake that [i.e., apply the posted rate to 5-year fixed terms], to give a little bit more interest rate cushion"

    Best way to beat the competition is to control the rules.
  • Mortgage girl | 04 Oct 2016, 04:40 PM Agree 0
    Dear Mtg guy....that's a nasty an unnecessary comment. Merix is an outstanding lender, who grew by 40% last year , more than double the market. And 25% this ytd. If you think this is only going to impact monolines, wait till the two remaining banks have a huge market share and cut broker commissions to advantage their sales forces. Let's not be niave .
  • RBC Mortgage Specailist | 04 Oct 2016, 04:44 PM Agree 0
    Bye bye mortgage brokers, it's been fun playing with you.
  • Royal Bank Mortgage Specialist | 04 Oct 2016, 04:50 PM Agree 0
    So long mortgage brokers....
  • Brad | 04 Oct 2016, 04:52 PM Agree 0
    This is going to make mortgage transfers way more difficult for consumers. They'll be stuck with whatever rate their lender offers! Unintended consequences!!
  • Dave | 04 Oct 2016, 05:03 PM Agree 0
    @RBC mortgage specialist

    Enjoy your $40k salary while you slave for the bank. Brokers will always be making money because they're smarter than you...thats why you work at the bank!
  • Ex-Bank Now Broker | 04 Oct 2016, 05:14 PM Agree 0
    Hey RBC 'specialists', sorry, what was that? I couldn't hear you over the sound of 130bps hitting my corporate account. And just an FYI that cash came complements of RBC - this statement will confuse you I'm sure. Do a little research on the mortgage market in Canada, you might learn a thing or two. Of course this is assuming you can find some time in between fabricating employment letters and writing sales reports.
  • Kelly Rowe | 04 Oct 2016, 05:18 PM Agree 0
    There is any obvious correlation with the big 5 and the government when you know that, last I read, 54% of first time home buyers use brokers.
    Who is this going to effect to the greatest extent, First time home buyers.
    My question is rather then stating the obvious about how down right criminal this is and how it smacks of collusion, what can we do about it?????????
  • Ron Butler | 04 Oct 2016, 05:21 PM Agree 0
    If monoline lenders can no longer offer: any refinances, conventional transfer / switches, and all purchases are restricted to 25 year amortization and banks have NONE of these restrictions; then you all can guess what the future will bring.

    Let's all start to communicate to media, government, any manner that is available to us that the government has made a mistake and Monolines should be allowed to continue to bulk insure their mortgages. The 4.64% qualifying can stay but the rest of the changes cannot go forward.
  • Joe | 04 Oct 2016, 05:35 PM Agree 0
    The bank specialist need all the help they can get. They could never make in the broker industry because they are seriously incompetent. Now there is the truth.
  • Paul Whatmore | 04 Oct 2016, 06:51 PM Agree 0
    Dear Broker, Agent and bank Mortgage Specialist,
    Being fairly new to the mortgage industry... it is 39 years and 6 weeks since I left the my employment with one of the big 5. Let me tell I will still be here for years to come.
    My biggest business error was to deliver clients to one of Canada’s 5 majors banks where they were screwed over by abusive discharge fees. The only Mortgage deal I was ever sued over was done with a bank.
    I have been here through at least 3 and possibly 4 recessions since deciding to move to the Brokerage industry. If you think these changes are going to kill the mortgage broker industry you RBC "Mortgage Specialist" are brain damaged and completely ignorant. The only reason you work for a "bank" is because you are afraid of missing a pay cheque or actually writing a deal where you didn't lie about your applicants income. I am still here after bank prime of greater than 21% in 1982 and as low as 2.7% today. Mortgage Brokers are a resilient lot. If the the impact of these changes is as great as you think they are you had better hope that you don't get an invitation for a meeting with HR. What would you do tomorrow???
    I have the ability to think independently outside of the box and to work with private lenders.
    I know you think RBC "Mortgage Specialists" have the capacity to provide sub prime lending to keep your client. Think again those sources are going to be effected by these changes. I paid more in taxes than you earned last year.
    So, I apologize for my diatribe to those reading this but I assure you that for the most part a Mortgage Broker will continue to provide better service and products than an insecure RBC employee.
    Warmest regards,
  • Time to band together | 04 Oct 2016, 08:42 PM Agree 0
    If every broker, agent, lender and insurer took the time to share their concerns about these new changes with their local and provincial government, we could likely see some revisions. We need to rally our clients and educate them on how this affects them. Get them writing their local gov't as well. Mobile specialists and bankers can mock but many of them come to brokers to get a decent mortgage product with a monoline lender. Even they know the value.
  • C. | 04 Oct 2016, 08:56 PM Agree 0
    Yes these changes as they were presented to us yesterday are going to impact monolines and the broker channel but don't forget that it's also the end consumer that is/will be hurt the most. Harder to qualify for mortgages, higher penalties, higher rates from the big 5 simply because they can. Unintended consequences indeed. Here's hoping further clarification and modification occur before the 17th.
  • Chicken Little | 04 Oct 2016, 11:44 PM Agree 0
    The sky isn't falling; life, business and the broker industry goes on.

    Find your niche, become an expert at it, provide your clients with exceptional service and top-notch advice and you'll lead the pack any day of the week.

    My prediction: Mortgage Brokers continue to capture market share - another 2 - 4% of overall market and an additional 5% of first time homeowner business by end of 2017. You heard it here first.
  • Deb | 05 Oct 2016, 01:37 AM Agree 0
    The Ministry of Finance wishes to reduce household debt. They have imposed and enforced many changes to the mortgage lending rules. It might of been smarter to impose rules that the BIG BANKS must use income qualifying criteria for qualify unsecured credit not just BEACON scoring to determine affordability. This way we wouldn't see clients continue to MAX out on unsecured credit or going from BANK TO BANK to get 15-20K of unsecured credit just based on CREDIT SCORING not affordabilty!!!!!
  • mortgage babe | 05 Oct 2016, 02:09 AM Agree 0
    this will only feed the private mortgage industry! great news for me, bad news for the consumer.
  • Jivan Sanghera | 05 Oct 2016, 09:51 AM Agree 0
    Hilarious that the Road reps are taking shots at us. #classic especially considering the most successful ones usually become brokers. #getlicensed
  • Underwriter | 05 Oct 2016, 11:45 AM Agree 0
    wholeheartedly agree with Mr. Butler. keep the 4.64 qualifying but removing bulk insurance capabilities for monolines only strengthens the big 5 and creates and uneven playing field in the marketplace. Competition, in any industry, benefits the consumer first and foremost. It would appear given the D of F announcement that they have forgotten that.
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