February 21st, 2012

Yields Break Out

Some of the most competitive lenders in the market are boosting fixed rates by 10+ basis points, effective tomorrow.

It comes on the heels of today’s upside breakout in bond yields.

5-Year-Bond-Yields-and-Mortgage-Rates

The 5-year government yield (which leads fixed rates) sprang up to 1.51% today. That’s a 3½ month high.

If the yield holds above 1.50%, five-year mortgages around 3% could be a bygone, at least for the foreseeable future.

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February 20th, 2012

CIBC’s Mortgage Gamble

Bank-Strategy-GamblingCIBC felt it had to do something with its mortgage broker business.

It’s facing:

  • Shrinking mortgage margins
  • Slow balance sheet growth
  • Regulatory changes (IFRS and Basel II and III), which increase its mortgage funding costs
  • Policy changes (related to CMHC insurance, covered bonds, and securitization), which increase its mortgage funding costs
  • High broker compensation versus its proprietary sales force (50-100% more in some cases)
  • Lower retention rates on broker business
  • Far less cross-selling with broker-originated mortgages (compared to its retail sales force).

It had to make changes and it’s hard to blame CIBC management for evaluating all options, including curtailing its broker business.

That said, selling FirstLine (the broker-lending division that CIBC has spent 17 years building) and retreating from the broker channel would be a monumental gamble.

The potential price of failure—for shareholders, consumers, and the executives calling these plays—is significant.

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February 19th, 2012

Mortgage Rule Changes Hinge on Spring Market

mortgage-regulationsGovernment-imposed tightening of mortgage qualifications has clearly been a red hot topic.

Given the public debate over housing valuations, the Canadian Association of Accredited Mortgage Professionals (CAAMP) wants to ensure the government has all the facts before making any mortgage policy changes. As a result, CAAMP president, Jim Murphy, recently met with officials in Ottawa to deliver CAAMP’s latest research findings.

With all the media headlines about housing risk, “It’s important that the government base policy on data and not anecdotal evidence,” he told CMT.

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February 18th, 2012

Mortgage Careers of the Week

FSCO Logo

Company: Financial Services Commission of Ontario (FSCO)
Position Title: Managers (2), Market Conduct Compliance 
Licences or Registrations Required: No
Location of Position: Toronto, Ontario
Applicants may contact:  recruiting@fsco.gov.on.ca


TMG The Mortgage Group
Company: TMG The Mortgage Group Canada Inc.
Position Title: Deal Centre Internal Broker/Underwriter
Licences or Registrations Required: Valid BC sub-broker licence
Location of Position: South Granville, Vancouver B.C.
Applicants may contact: dealcentre@mortgagegrp.com


Click on the position title above for more information.

Advertise your mortgage job opening today! Click here to post. Or browse CMT’s Mortgage Jobs Database.

February 17th, 2012

Mortgage Market Share — Top 10 Lenders

Big-BanksBanks control three out of four mortgages in Canada’s $1.1 trillion mortgage market, and their share has been growing.

We recently spoke with someone who makes it his business to track mortgage market share, David McVay of McVay and Associates Ltd.

Being incorrigible mortgage data addicts, the figures David shared were fascinating. We’ll convey the highlights over the next week.

First off, since everyone loves a good top 10 list, here are the top 10 Canadian mortgage lenders by market share…

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February 17th, 2012

Mortgage Career: TMG The Mortgage Group – Deal Centre Internal Broker / Underwriter

TMG The Mortgage Group
Company: TMG The Mortgage Group Canada Inc.
Position Title: Deal Centre Internal Broker/Underwriter
Licences or Registrations Required: Valid BC sub-broker licence
Location of Position: South Granville, Vancouver B.C.
Applicants may contact: dealcentre@mortgagegrp.com


Deal Centre Internal Broker / Underwriter

TMG The Mortgage Group is a full service mortgage brokerage company with over 700 brokers and agents from coast to coast. TMG is one of the largest and longest standing mortgage brokerages in Canada. TMG The Mortgage Group is based out of Vancouver, and has been in operation for 20 years.

The Deal Centre Broker’s focus will be to provide our existing mortgage brokers with support, guidance, and training to help them exceed their personal business goals.

Responsibilities:

  • Send out updates to brokers
    • searching files on Expert to identify broker
  • Handling questions from brokers
    • Assisting DC Manager with broker phone calls and emails
    • Answering deal related questions
    • Providing contact info for lenders
    • Providing lender requirements
    • Contacting lenders on behalf of brokers
    • Identify the best lender for individual deals
  • Updating intranet website with up to date information from lenders
    • Latest Lender policies
    • Latest news articles
    • Keeping deal centre rates and comp up to date
    • Communicating/summarizing latest info to brokers
  • Training of new brokers
    • Reviewing docs and deals before submission to lender
    • How to underwrite/tweak a file
    • Developing presentations
    • Performing various presentation
      • Income types
      • Disclosure docs
      • Deal diagnosis
      • B lending
  • Maintain ongoing service commitments

 

Education/Experience/Required Skills:

  • Mortgage Industry experience and knowledge
  • Leading/Motivating others
  • Self Starter and Results Driven
  • Superior Communication Skills
  • Experience in providing excellent customer service
  • Ability and Willingness to travel
  • Post secondary education an asset
  • Ability to work independently and in a team environment
  • Enjoys working in a fast paced environment
  • Proficiency in Microsoft computer applications
  • Proven organizational skills and demonstrated ability to prioritize and multi-task
  • Must hold valid BC sub-broker license

 

Compensation:

Will consist of a base salary, benefits and variable compensation.

Reporting:

Will report to Manager, Deal Centre

 

Please send your cover letter and resume to:

dealcentre@mortgagegrp.com

 

February 16th, 2012

Rate Estimates Get Chopped

Rate-Prediction-AccuracyWe find rate predictions more fun than astrology (and almost as accurate).

For those who give weight to economists’ rate models, the past month has been intriguing. Our dismal scientist friends seem to be getting ever more pessimistic.

Economists’ 2013 prime rate prognostication, for example, is now 1/2 point lower than it was a little over a month ago.

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February 14th, 2012

Canadian Mortgage Awards 2012

Canadian-Mortgage-Awards-2012Just 10 days remain to nominate the industry’s top mortgage brokers, brokerages, underwriters, BDMs, community service volunteers, and even your favourite mortgage website.

Canadian Mortgage Professional (CMP) has 21 award categories in all this year.

This is its nomination link.

Folks can make their selections until Friday February 24 at 5pm EST.

After finalists are chosen, winners will then be announced at CMP’s gala ceremony on June 1 in Toronto.

February 13th, 2012

Mortgage Career: FSCO – Managers, Market Conduct Compliance

FSCO Logo
Company: Financial Services Commission of Ontario (FSCO)
Position Title: Managers (2), Market Conduct Compliance 
Licences or Registrations Required: No
Location of Position: Toronto, Ontario
Applicants may contact:  recruiting@fsco.gov.on.ca


Managers, Market Conduct Compliance

  • two permanent positions

The Financial Services Commission of Ontario (FSCO) seeks proven leaders in the regulatory or financial service environment to manage the delivery of market conduct compliance and risk management operations for all financial service sectors in Ontario that are regulated by the FSCO, to safeguard and protect consumers and ensure a viable and functional financial service marketplace in Ontario. Consider this opportunity to join a dedicated senior management team in a fast-paced environment.

 

As the Manager, Market Conduct Compliance, you will:

  • lead and oversee the planning and management of compliance teams responsible for the delivery of market conduct and prudential examination and review and audit projects
  • review compliance risk assessment operations and project results and authorize notifications to financial institution officials and intermediaries of findings and compliance requirements
  • manage the provision of technical advisory and consultation services to stakeholder sectors on the interpretation and application of FSCO legislation and compliance requirements and to consult on regulatory matters that impact sector operations
  • lead the assessment of market conduct risks, impacts and issues and the provision of strategic advice and issues management strategies/solutions to the Director, Executive Director and CEO/Superintendent
  • lead/manage research projects for compliance program development and implementation
  • participate as a member of the branch/division management team and lead division, FSCO, inter-ministry and sector committees and project teams

 

Location: 5160 Yonge Street, Toronto, Ontario        

 

What we are looking for:

Experience within the financial service sectors in Ontario:

  • proven comprehensive knowledge/experience related to business operations, product development, the distribution of financial products/services or risk management primarily within the life and health insurance, mortgage brokering or other FSCO-regulated sectors

 

Knowledge in a financial services environment:

  • proven comprehensive knowledge and expertise related to market conduct, governance, risk management and/or compliance principles or proven comprehensive knowledge of accounting or internal audit theory, principles, methods and practices within the financial service sectors

 

Strategic Orientation, Leadership and Management Skills:

  • strategic orientation with proven excellent leadership skills managing the delivery of business or regulatory services in a financial sector
  • proven excellent human resources management skills to effectively lead and manage a staff team

 

Analytical, Decision-Making, Issues Management and Project Management Skills:

  • proven excellent risk assessment, decision-making and analytical skills to identify significant issues, which impact the organization or regulated financial sectors and develop and implement effective solutions
  • proven project management skills to lead program/process development projects and manage deadlines and competing priorities

 

Relationship Development/Management, Communication and Consultation Skills:

  • demonstrated stakeholder relationship development/management skills to represent the government/FSCO with licensees and officials in the regulated financial service sectors
  • demonstrated superior verbal and written communication and presentation skills to provide regulatory expertise, technical analytical reports and advice and briefings to stakeholders, senior management and the CEO/superintendent

 

Salary range:  $76,726.00 – $100,240.00 per annum 


Please visit www.ontario.ca/careers and enter Job ID 42055 in the Job ID search field to view detailed job information, including instructions on how to apply. Alternatively, you may send your resume by March 2, 2012, to:

Financial Services Commission of Ontario, Human Resources Unit
5160 Yonge Street, 16th Floor
Toronto, ON M2N 6L9
e-mail: Recruiting@fsco.gov.on.ca


Please use only one method of application (e-mail or mail). Only those applicants selected for an interview will be contacted.

The Ontario Public Service is an Equal Opportunity Employer. Accommodation will be provided in accordance with the Ontario Human Rights Code

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