“Our sense is that this guideline is to quantify risk at renewal only” (i.e., homeowners that have paid as agreed probably won’t be pushed out on the street if they don’t qualify at renewal)
“I do believe that…regulators will look to assess that risk on a bank’s portfolio and look to perhaps a higher risk-weighting for capital purposes on that part of the balance sheet…perhaps requiring a higher loan loss provision/reserve etc.”
On inter-provincial broker licensing
“The legislation currently allows inter-provincial licensing. That, however, introduces a challenge because licensing education standards are very different between provinces. I believe we need a level playing field and that the licensing education requirements should be consistent between provinces.
MBABC is advocating a national educational standard so brokers in one province can be licensed more easily in multiple provinces. (This is a much-needed change that would benefit consumers nationwide. It would boost competition, lower rates and let homeowners access top brokers from other provinces.)
MBABC will also be pushing for changes to allow BC sub-mortgage brokers to incorporate. That would help sub-mortgage brokers manage taxes and liability in a similar way as brokers.
Sidebar: Here were the headcounts from this year’s event (source: MBABC):
Exhibitors: 53 (versus 58 last year)
Delegates: ~400 (versus ~500 last year)
Attendee Breakdown: 60-65% brokers and 35-40% lenders & affiliates.