The concerted action of government and mortgage players is putting a dent in fraud – success that shouldn’t be forgotten in the aftermath of high-profile allegations affecting 45 brokers
Brokers argue there aren’t enough ramifications to deter brokers from falsifying documents, but some suggest reporting them to a database such as REDX is a good start
Brokers hope the recent suspension of numerous brokers by one lender for allegedly falsifying documents won’t encourage regulators to hand out more stringent guidelines
One leading mortgage insurer says fraud is on the decline in the Canadian mortgage industry as a result of tightened lending guidelines
Home Trust delivered a message of confidence to its broker partners.
One seasoned broker is suggesting pressure from referral partners often leads inexperienced mortgage agents to skirt the margins and embellish income statements.
Tightened guidelines may be encouraging some mortgage professionals to take shortcuts, but that is no excuse say industry players reacting to Home Capital's move to suspend ties with several brokers
Lenders are backlogged, creating a delay in offering commitment letters and brokers are frustrated as a result.
Brokers believe these former mortgage professionals make some of the best underwriters and BDMs.