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Mortgage Broker News | 21 Aug 2018, 12:41 AM Agree 0
A mortgage professional and a lawyer present their reasons for why this controversial product should or shouldn’t be peddled by mortgage professionals
  • Catherine | 21 Aug 2018, 09:52 AM Agree 0
    I am securities educated, designated, and have a lengthy career in investments BEFORE becoming a Broker (13 years brokering F/T) and I was dead against this! I strongly agree that Mortgage Brokers need not blur the lines on these. When presented this at a dog & pony show I asked the simple question, in a room of about 30 peers, what is my liability here? Mouth full of marbles was the response. I warned broker colleagues to stay out of this space and some did not listen.
  • Ron Butler | 21 Aug 2018, 03:17 PM Agree 0
    I think it is important to differentiate between putting two brothers money together and funding a 65% Loan to Value first mortgage on a subdivision single family home appraised by a reputable appraiser and putting money into a con job developed by 2 individuals who already had a lifetime ban from from the Mutual Fund Industry. Because that is what we are discussing here. In mid-2019 the two brother scenario is going to outlawed for individual mortgage brokers to arrange and that is a sad outcome of of the decade long evil perpetrated on the Ontario public by a group of scam artists. It is also a bit tiring to read verbose, virtue signalling rants written way after the fact. Some of us raised the certainty that Fortress was sophisticated fraud a decade ago and we have the the lawyer's letters to prove it.
  • Calum Ross | 09 Sep 2018, 03:20 PM Agree 0
    Ron Butler knows his stuff so I trust what he said is in fact accurate.

    Just to be clear - my commentary was on the complicated nature of these investments. I believe good ones may have a place for accredited investors up to an asset allocation of 10-15% given the findings of the most recent world wealth report for UHNWI and and High Net Worth Individuals (HNWI's). Also - FSCO did a great job given what they had to deal with.

    I happen to think Fortress did have some good people there... they just broke Warren Buffets two golden rules:

    Rule No.1: Never lose money.
    Rule No.2: Never forget rule No.1.
  • Calum Ross | 09 Sep 2018, 03:24 PM Agree 0
    FYI - recent commentary by HBS summarized the logistics that FSCO, mortgage and investment community need to overcome.

    This was a fresh piece published last week:

    https://www.alumni.hbs.edu/stories/Pages/story-impact.aspx?num=6747&cid=alumninews-september2018b
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