We’re hearing that reverse mortgage company Seniors Money Canada has suspended new originations. A source in the company says the Australian bank that backs Seniors Money has been hard hit in the subprime fiasco and has curtailed its funding. Seniors Money is supposedly on the hunt for a new domestic funder.
According to Filogix, brokers funded 11.41% fewer mortgages in March versus one year prior. However, they used mortgage banks a lot more…21.58% more than last year.
Alberta’s mortgage broker population has risen from 400 to 2,000 in the last 10 years, according to Invis’s Gary Siegle.
MGIC Canada is apparently making good progress in it’s efforts to launch its mortgage default insurance business in Canada. The company foresees “no material roadblocks to becoming a Federally regulated mortgage default insurer” and is optimistic it will receive its required licenses “in the next short while.”
“It’s possible banks will cut their fixed-rate mortgages by more if borrowers start swinging over to variable-rate mortgages…But banks will face less competition from smaller lenders that do not have a large base of deposits.”
“Clients of various subprime mortgage lenders could…have difficulty renewing or replacing their mortgages if their financial position has not improved.”
“In the present capital market environment the advantage of gaining liquidity via insured mortgage origination far outweighs the benefit to [Abode Mortgage] of generating fee income from uninsured mortgage origination.” – Abode Mortgage CEO, Mike Linehan
Abode Mortgage is now on board with AIG. Abode is using AIG’s new auto-evaluation program (for apparently all of its mortgages) to accelerate or avoid appraisals. Abode anticipates the majority of its mortgages will no longer require appraisals (and appraisal fees).
Dominion Lending Centres, a national mortgage brokerage, has selected Filogix Expert as its exclusive point of sale system. Dominion has been growing fast after launching roughly two years ago. They now have over 60 franchises across Canada.
Equitable Trust says it’s facing fewer competitors in its core mortgage markets than it did a year ago. This is expected to provide a long-term opportunity to improve interest rate spreads on the Company’s mortgage portfolio. Equitable Trust is an alternative lender based out of Toronto.
RBC had $124 billion of mortgages on its balance sheet as of Jan. 31, up from $108 billion a year earlier.