- There aren’t many mainstream lenders left with 40-year amortizations and 100% financing. The ones that remain have been pretty busy. Merix, for example, has been on a small hiring spree lately to help handle its increased volume. As we approach the October 15 deadline (when 40-year and $0-down insured mortgages disappear) the remaining lenders offering them will likely get even busier.
- Many think negatively of the subprime market, but it’s sure been profitable for Home Trust. The “alternative” lender’s mortgage volume rose 42.5% in the last year. Profits jumped 21%. Home Trust has a deposit-taking model that’s fared better than most lenders who rely on securitization. That said, Home’s securitization activities have reportedly offered a lower cost of funds than its deposits lately. Separately, CEO Gerald Soloway sees a lot of “low risk growth opportunities” this year, thanks to many of its competitors leaving the Canadian market. GE Money’s departure is case in point.
- “We’re seeing that mortgage lenders are putting a brighter face on things than they were two months ago.” — Bruce Cran, president of the Consumers’ Association of Canada, via The Canadian Press.
- We hear Merix may be adding a 10-year term in the next few months to their popular HELOC product.
- MortgageBrokers.com posted revenue growth of 72% last quarter. Total sales were $4.03 million. As of June, MortgageBrokers.com had 403 agents (up 47%) and 36 offices. Its stock price is currently $0.15 a share. SEC
- CMP reports that over 1/3 of Ontario mortgage agents weren’t compliant with FSCO’s July 1 licensing deadline.
- CHIP reverse mortgage originations rose 17% to a record $39 million last quarter. CHIP’s average loan-to-value is 36%. The company also recently inked a distribution agreement with Multi-Prets, Quebec’s biggest mortgage broker.
- CAAMP has a new website for this year’s Expo in Vancouver, BC. The event is Canada’s biggest mortgage trade show. Attendance at this year’s show should top 1,800. Stats from last year: 52% of attendees were mortgage brokers. 30% were lenders.
- CAAMP is launching an e-directory in January 2009 that will allow members to update their own contact information. Hopefully that includes members’ website addresses as well.
- Seneca College has been given “sole” rights to provide FSCO-required education for mortgage brokers. The new course starts this December. (Note: This information applies to ON brokers only, not agents)