September 26th, 2014

DLC Makes Purview Free to Its Agents

Superbrokers love to tout their technology, but too often that technology consists of non-value-added web apps.

Dominion Lending Centres (DLC) has an online tool that’s relevant. It’s called the Property Valuation System (PVS) and it’s a version of Teranet Purview, a property information system.

With the PVS, a mortgage broker can:

  • Instantly obtain property value estimates
  • Check who’s on title (which owners, which lenders, which mortgages)
  • Evaluate sales history and property comparables

And the best part is, it’s free to all 2,200 DLCers thanks to a sizable investment in Purview by Dominion.

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September 22nd, 2014

CMHC Alludes to More Changes

The quest to trim government exposure to mortgage risk continues. In a speech Friday, CMHC head Evan Siddall said the country’s no. 1 default insurer may start offloading some risk to lenders.

“…We are evaluating a range of ideas on future improvements to our housing finance system,” he said, “including risk-sharing with lenders to further confront moral hazard, future sandbox changes if housing markets are to become less stable, and increased capital requirements.”

That may mean that CMHC will eventually make lenders pay a deductible on their default insurance claims.

If such a system were implemented, it would naturally trigger the question of benefit versus cost. And the answer to that question is debatable at best.

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September 20th, 2014

Bissada on Online Origination

Few people in this country understand the potential of online mortgage origination better than Yousry Bissada, President & CEO of Kanetix. That’s why it’s always informative to hear his predictions on the topic.

Bissada visited Canadian Mortgage Hangout on Friday and shared his read on the pulse of Canada’s online mortgage industry. Below are key takeaways from that interview.
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September 16th, 2014

Bankruptcy Trustee Advocates 10% Down

A minority of housing commentators have pushed for bigger down payments ever since the credit crisis. Bankruptcy advisor Douglas Hoyes is adding another voice to that chorus.

According to his firm’s data, out of 2,030 insolvent homeowners he analyzed:

  • 9 in 10 had less than 20% equity
  • 7 in 10 had less than 10% equity
  • 2 in 3 had no equity at all

That’s enough to make him champion a 10% minimum down payment rule.

But is it enough to justify one?

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September 13th, 2014

How Brokers Operate: Some Stats

Mortgage-Brokers-Personal-ServiceThe vast majority of mortgage brokers recommend suitable mortgages, according to a new report from the Mortgage Broker Regulators’ Council of Canada (MBRCC). That’s vital because, as MBRCC Chair Kirk Bacon states, “Unsuitable mortgages can have a devastating financial impact on borrowers and their families.”

To find out how brokers operate, regulators surveyed 1,113 of them in Ontario, Alberta and Newfoundland. They discovered practices that were mostly reassuring, with a few stats you may find surprising.

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