Scotia Mortgage Authority says it is “now No. 2 in the broker-originated mortgage market in Canada.” [CIBC’s FirstLine is #1.] (CAAMP)
64% of mortgage brokers predict that over half of their business in 2009 will come from new clients, according to a CMP survey. More…
FirstLine no longer allows salaried or commissioned applicants to qualify under its Flex Equity program. Maximum LTV has also been reduced on Flex Equity deals from 75% to 65% (60% for refis). Borrowers must also now prove sufficient liquid assets to cover six months of mortgage payments.
Here’s a good rundown of recent lender policy changes by TMG’s Christine Chien: Link
Here’s one take on recent commercial mortgage spreads (over bond yields): Link
Last week’s CMHCfixed-rate mortgage buyback was once again undersubscribed, indicating that banks are decreasingly reliant on the government for mortgage funding. Then again, it might have been due to CMHC setting the interest rate too high suggests Jim Murphy, President of CAAMP. “Some of the lenders may not have found the pricing of this to be very attractive,” he told Canadian Business. Indeed, CMHC’s last buyback offer had an interest rate 1/5% above competing CMB costs. (Some background: The government set up these buybacks as a way for lenders to access cheaper capital in a tight credit market.)
“Mortgage [refinances] can result in extra costs for lenders with mortgages in the Canada Mortgage Bond program or other securitization vehicles because the loan needs to be removed from its securitization pool.” – Canadian Real Estate
If you can’t get a mortgage approved at CMHC or Genworth, the following lenders offer AIG as an alternative:
Speaking of AIG, their Canadian mortgage insurance arm is being reorganized into a new company according to CMP. More…
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