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Mortgage Bytes

  • Ray Turchansky applauds BMO for eliminating bank fees for purchasers taking out BMO mortgages.  Then he says, “even more charges could be waived for people renewing, which would reduce the amount of shopping around for mortgages that goes on.”  Are we hallucinating, or is Turchansky suggesting that shopping for the best rate and terms is somehow bad?
  • 22% of Canadian subprime borrowers have variable mortgage rates.
  • subprime-mortgages40% of American subprime borrowers with variable rates will have their homes foreclosed on, says The Province
  • Benjamin Tal thinks total U.S. subprime default rates will hit 25%.  Furthermore, he says, “Based on recent estimates, as much as 70 per cent of early payment defaults may be linked to misrepresentation of the original loan application.”
  • Ottawa has received its first two applications to start Muslim-friendly “Sharia” banks.
  • Canada’s commercial paper bailout (a.k.a. Montreal Accord) is nearing an impasse
  • says broker conflicts of interest are sometimes inadequately disclosed in B.C.  In Ontario, FSCO will require better disclosure of conflicts on the Statement of Mortgage when its new Act takes effect July 1, 2008.