Lender reaches mortgage cap … for now

Lender reaches mortgage cap … for now

Lender reaches mortgage cap … for now It’s far from the norm, but still an indication of just how busy brokers have been this year: One lender has told its broker partners it has no more money to lend for mortgages.

In a memo to brokers – the full text of which was published by B.C.-based broker Dustan Woodhouse on his personal Facebook page – local credit union Northern Savings Credit thanked its partners for the busy year. And told them it will not lend any more money for mortgages for the time being. 

“We at Northern Savings Credit Union have had a very busy year thanks to the support from all of you! In fact, our underwriters have been SO busy that we have now reached our lending cap for the year,” the credit union said to its broker partners, and published online by Woodhouse. “What does this really mean? We work for a really small (but great) Credit Union and we used up all our money.”

The lender says it will temporarily stop accepting applications until further notice.
It also says it will honour all existing approved files and will fund those deals without any issues.
However, B.C.-based brokers who use the credit union’s services have not been given a concrete date when they can resume sending deals.

Our staff will stay current on all the latest and greatest industry information so we are ready to jump back in and continue doing what we love to do for you as soon as possible,” the CU said. “When will we reopen the floodgates? When you receive an email from us saying we have reopened the floodgates (cheeky….I know).”

Brokers across the country have reported upticks in business, crediting record-low rates and a housing market that, in most provinces, just won’t quit.

And this may be the extreme evidence of just how busy some brokers – and lenders – have been.
Calls to the lender have not yet been returned.