Cheap money fuelled another buoyant year for real estate in 2011.
That helped housing values climb a wall of worry (prices rose another 4.6% Y/Y as of November) despite numerous predictions of a correction. Mortgage balances went along for the ride, growing another 7%.
2011 was a year marked by new mortgage regulations and a rate market that continually surprised most observers. Among all of the various developments, however, there were five mortgage stories that stood above the rest:
The information value of CMT would be vastly diminished without reader commentary.
Feedback from the community adds context and insights that no one source, including us, can provide on its own.
Readers also keep things interesting with exchanges that are, at times, entertaining and spirited to say the least. For that reason, we extend our deepest appreciation to those of you who interacted with the site in 2011 for the benefit of others.
We’d also like to extend a special thanks to the year’s top 20 commentators listed below.
After a long event-filled year in the mortgage world the Christmas holidays are a treasured opportunity to wind down.
This year, lenders will be closed:
- Monday, December 26
- Tuesday, December 27
- Monday, January 2
We’ll be back with you Tuesday, December 27.
From all of us in the CMT family, may you and yours have a warm and cheerful holiday.
With the recent dip in long-term funding costs, lenders are finally sharpening their pencils on 10-year mortgage pricing.
Decade-long rates haven’t been this cheap in virtually forever.
Some brokers are quoting as low as 4.34% today, whereas most lenders were over 5% last quarter. (Not that long ago, 4.34% was considered good for even a 5-year rate, let alone a 10-year.)
With 10-year mortgages going “on sale”, we did some calculations to see how they stack up against the most popular term, the 5-year fixed.
Last week we spoke to a crown attorney whose caseload consists largely of mortgage fraud.
He says he comes across document-related fraud day in and day out and cites a surprising number of cases where bank insiders claim to “accidentally overlook” or turn a blind eye to doctored job letters, pay stubs, etc.
Most of the cases that make it to court involve calculated criminal plots where there’s more than one criminal party and/or the lender has incurred material losses.
The bulk of fraud, however, is fraud for shelter. That’s when mortgage applicants plan to live in the home and misrepresent their qualifications to get approved.
There’s been a debate underway in Saturday’s thread about what characteristics comprise the “best” mortgage brokers.
Someone said that the best brokers were not salespeople, but educators. That was shot down by another, more cynical reader who felt commissions are our master.
For what it’s worth, here’s our take on the whole thing…
What’s a good rate? Depends whom you ask.
According to a recent Maritz poll, if you ask a new broker you’ll generally be quoted a lower rate than if you asked a veteran broker.
(Click to enlarge)
Maritz’s survey seems to show a clear link between the rate quoted and a broker’s years of experience. Newer brokers, for example, define “good rates” as being half a percentage point less than brokers who have been in the business 20+ years.
We asked industry experts Gary Siegle (Regional Manager, Invis), and Jim Murphy (President, Canadian Association of Accredited Mortgage Professionals) for their take on this data.
Company: Street Capital Financial Corporation
Position Title: Marketing and Sales Coordinator
Years of Experience: 2 years experience
Location of Positions: Toronto, ON
Applicants may contact: email@example.com
Marketing and Sales Coordinator Role
- Excellent organizational and event management skills
- Strong computer skills – excel, word, powerpoint, CRM database management
- Strong communication and writing skills
- Reporting Analysis skills
- Strong Interpersonal skills
- Mortgage Industry knowledge required
- Project management experience an asset
- Ability to excel in a high growth environment with tight timelines and changing priorities
- Verify all reports, including priority reports, and ad hoc reports are submitted on time; follow up by phone with VP/sales team when required
- Priority reporting: Analysis of sales reports to verify adherence to management direction. Prepare weekly and monthly summaries identifying gaps in activity levels and escalate to management for corrective action
- Activity Reports: Monitor and follow up on account specific activity. Escalate weekly issues and produce a monthly summary
- Printing and shipment of marketing materials for the sales team as needed
- Manage and maintain CRM contact database
- Social media communications
- Order, track and maintain Marketing Materials inventory within budget
- Keep marketing budget up to date
- Prepare weekly/daily Lender Rate Comparative update
- Rate changes – update rates and distribute to sales and broker network
- Arrange for Broker Golf Tournaments
- Organize yearly Broker Trip Reward
- Arrange broker events as required
- Responsible for registering Street Capital for association events such as CAAMP, MBABC, AMBA conferences/tradeshows etc.
- Preparing all marketing material – printing and distribution for these events
Assist Director, Marketing and Product Development with the following tasks:
- Weekly communications for brokers
- Press Releases
- Corporate announcements
- Staff announcements
- Sales, internal, external presentations as required
- Create advertisements for Street Capital for various industry publications
Most homeowners don’t know what a “covered bond” is. But they’d probably be happy to hear that covered bonds help lower mortgage rates (indirectly) and provide borrowers with more options.
In the story that follows, we take a brief look at the growing Canadian covered bond market and what it means to everyday borrowers and lenders.
Company: MonCana Bank of Canada
Position Title: Manager Mortgage Underwriting
Years of Experience: 5 years Industry experience
Location of Positions: Toronto, ON
Applicants may contact: firstname.lastname@example.org
Manager Mortgage Underwriting
MonCana Bank of Canada is a new Canadian bank headquartered in Calgary operating across Canada.
We are recruiting for a full-time Manager Mortgage Underwriting to lead the underwriting team in our Toronto office, which will be responsible for all underwriting for Eastern Canada. Mortgage underwriting is the cornerstone of origination and a vital link between Business Development and Funding. The challenge is ensuring that prudent underwriting is balanced with the corporate goal of continued increasing volumes.
This role will provide leadership, direction, and expert advice to the underwriting team while ensuring that effective relationships with the Sales team and Mortgage Brokers is established and maintained. The Manager will ensure that risk is managed appropriately without compromising service.
The Manager Mortgage Underwriting is responsible for:
- Ensuring all Underwriters underwrite to MonCana’s and all insurer’s specifications.
- Leading the team effectively to ensure time lines are met; information provided to insurers is accurate and complete; that each file makes sense and fits our requirements.
- Ensuring all queues are managed appropriately; responses to BDM’s and brokers are timely.
- Ensuring the team reviews the commitment letter and conditions of each file accurately and timely.
- Participate in the development and ongoing updating of all underwriting procedure manuals.
- Development and implementation of changes to existing procedures.
- Development and implementation of new products.
- Development and implementation of initial and on-going training programs for underwriters.
- Reviewing audit reports and quality assessment reports, waiving of conditions and managing policy exceptions.
- Performing random file reviews and communicating results through ongoing daily discussions with underwriters.
- Interviewing and selection of staff.
- Completing performance reviews
Ultimately this position is all about leading our team of underwriters through effective leadership while directing all aspects of performance for individual and unit objectives surrounding the quantity, quality, cost and timeliness of origination activities.
- 5 – 10 years of proven management and people leadership skills
- 5 years experience in the Mortgage industry including underwriting with an in-depth understanding of insured products
- Self directed with excellent organizational skills.
Those interested in applying for this position please email your resume to: email@example.com or fax to: 403-263-2236.
Only those candidates selected will be contacted