He spoke with Finance Department Minister, Jim Flaherty, and conveyed numerous points, including:
Acknowledgement of the Finance Department’s vital role in providing emergency mortgage liquidity during the credit crisis.
Concern about Monday’s sweeping policy changes that Mauris says “weren’t necessary.”
An alternative to eliminating 35-year high-ratio amortizations, whereby a borrower may qualify at a 30-year amortized payment but retain the right to a 35-year amortization (a sound alternative also supported by CAAMP)
Concern that LTV reductions on refinances will impair Canadians' ability to eliminate high-interest debt. Mauris stated, “What this policy is going to do, is force some homeowners who are experiencing job loss, sickness, separation, divorce, health challenges, or urgent unforeseen family crises, into having to sell their homes to get access to their very own equity.”
The need for the government to support our Insurers equally, which Mauris says benefits the consumer through choice and fair play. (CMHC’s insured mortgages are 100% backed by the government whereas private insurers are only 90% backed.)
A plea for the government to “have a very hard look at unsecured debt and specifically the credit card issuers.” Canadians’ debt risk is not due to mortgages he says. “It’s due to easy access to high interest credit cards, and other unsecured debt.”
In discussing the meeting with Mauris, he stated, “Our Industry is under assault and Canadians are the ones who are most affected.” He believes the mortgage broker industry needs to “bind together,” regardless of its competitive nature, and “speak with a common voice” so that brokers can continue “delivering choice, value, options and trusted advice to Canadians.”
Like news like this?
Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime.
Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.