Help for brokers from an unlikely source

Help for brokers from an unlikely source

http://www.mortgagebrokernews.ca/news/newsletter/171282/

_{By Donald Horne | 29/01/2013 8:00:00 AM | 0 comments}

A market effectively closed to brokers – developer subdivisions – may indirectly be putting more money into their pockets.

“The ‘Echo Boomers’ are flocking to the city, and downtown growth is outpacing the suburbs,” says Kim Gibbons, a mortgage broker with Mortgage Intelligence in Toronto. “I live and work downtown, because I don’t want the commute. A lot of my clients do not want the commute.”

That demographic -- the children of post-war Baby Boomers -- is turning away from the suburbs in favour of proximity to work and access to urban transit. But the lack of available land in the Greater Toronto Area is also stymieing the growth of new subdivisions and, in the process, forcing buyers naturally inclined to seek new construction into the existing-home market.

The trend is set to benefit brokers, who traditionally find themselves shut out of developer salesrooms but make their bread and butter in the resale market.

New numbers from RealNet Canada suggest the price gap in the GTA between high-demand housing and condos hit a record $196,844 in December as the price of new detached construction skyrocketed.

The cost of new, single-family homes in the GTA has, in fact, jumped 16 per cent to an average $632,868, a direct result of provincial policies to restrict urban sprawl, says developers.
Whatever the cost, brokers, even a cooling GTA market, stand to benefit.

“There is a lot of condo and residential resale activity, and I am still seeing a lot of multiple offer situations,” she says. “The market is definitely not flat-lining for the resale home and condo sector.”

Canadians Save By Renewing, Renegotiating Mortgages with Brokers

The Mortgage Broker channel in Canada is highly competitive. Research shows that consumers recently renewing their mortgages with Mortgage Brokers came out way ahead of those renewing with other channels.

Maritz Research Canada recently conducted a study of 2,000 Canadians. The study focused on Canadians' opinions of the mortgage industry and specific feedback on their mortgages and experiences with mortgage professionals.

Those who renewed or renegotiated recently with a Mortgage Broker reported an average rate decrease of 1.4 per cent from posted rates, compared with 1.0 per cent among all renewers. It is easy to understand why Broker market share is 27% on early term renegotiation and has potential to grow much higher.

Just one-third of Canadians say they have a good or full understanding of the services provided by Mortgage Brokers. The importance of awareness is clear: Broker market share is roughly twice as high among those who have a good or full understanding of Broker services when compared with those who have a lesser understanding.

The findings demonstrate that Mortgage Brokers could benefit from better explaining their services to home buyers in their local communities. Satisfied clients can also help their friends and families to save on mortgage renewals and renegotiations, by passing on their knowledge to alleviate any uncertainty about the Broker process. 

Calculate the potential payments on your next mortgage using the CENTUM Mortgage Calculator amortization tool. Click here: Mortgage Analyzer

Got questions? We've got answers! E-mail me now at anne_brill@centum.ca. I'm also available directly at 416-565-7795.

Anne Brill

Mortgage Agent

License # M08005655

Centum Metrocapp Wealth Solutions Inc.

License #12147

716 Gordon Baker Road, Unit 204 A

Toronto, ON M2H 3B4

Tel: 416-289-2224

Fax: 1-888-813-9403

_{ING Direct moving to cease broker originations} 

_{By Vernon Clement Jones | 15/01/2013 8:00:00 AM | 0 comments} 

 

For some brokers, it reads like a "Dear John" letter, but on Wednesday, ING Direct annouced it will effectively leave the channel, at the same time referring mortgage professionals to its new parent company Scotia.

"I wish to share with you some important news regarding the future of ING DIRECT’s mortgage business," writes Kim Luxton, director of broker sales for ING Direct Canada, in a letter to brokers. "Following the recent acquisition of ING DIRECT by Scotiabank we have completed a thorough evaluation of our mortgage business and have come to the decision that ING DIRECT will concentrate its origination efforts on its DIRECT channel and transition its broker business to Scotiabank."

The news has come as come as a shock to some brokers.

"It is sad to see a great lender leave the space," said Chad Robinson, owner of Verico Best Interest Mortgages. "ING has a been a great partner over the last decade."

Still, others are viewing Wednesday's announcement as the other shoe they've been waiting to drop since Scotia announced it would buy the upstart lender. At least one high-volume broker with ING told MortgageBrokerNews.ca that he started to ween himself off of the lender in November.
Regardless, Luxton is billing the decision as a way of streamlining the operation.

"We determined through our review that there was considerable overlap between Scotiabank’s and ING DIRECT’s broker businesses in terms of broker partnerships and product offering," she writes. "We felt that both ING DIRECT’s and Scotiabank’s objectives would be better served by allowing each entity to focus its efforts on its own relative strengths.

Additionally,  she says, our organization is confident "Scotiabank has the capacity to meet your needs and your clients’ needs, providing you with the level of service you have become accustomed to with ING DIRECT."

Luxton is also reiterating Scotia's commit to the channel ING is now preparing to leave.
As it makes that transition, she syas, "We will continue to accept new mortgage and HELOC applications up to 8:00 pm EST on February 16, 2013.

Also, effective immediately, ING Direct will no longer accept new rate holds and new pre-approvals, although they will honour existing 30-day rate hold certificates up until their expiry date.

Value declines jeopardize subprime market

_{By Vernon Clement Jones | 15/01/2013 8:00:00 AM | 1 comments} 

 

Value declines jeopardize subprime market. 

 

While brokers have their eye on the falling number of sales, in Vancouver they’re now ogling falling prices and the threat they could pose subprime deals.

“It’s really one of the few areas that we expect to see real growth,” Michael Sjerven, owner of Vivid Mortgage, told MortgageBrokerNews.ca. “So it’s of concern that the volume of subprime deals could be in jeopardy if values fall another 5 per cent to 10 per cent in Vancouver.”

The nail-biting has everything to do with 20 per cent equity requirements around subprime deals imposed by both institutional and individual private lenders. In B.C., many potential clients for those types of deal are now skirting that figure, with even a value decline of 5 per cent likely to cancel their access to refinancing in the alternative sphere.

Prices on B.C.’s Lower Mainland have already taken a tumble.

While the number of sales for Metro Vancouver dropped 22.7 per cent in 2012 from 2011, the average home price fell to $730,063, or 6.4 per cent down from a year ago.

For December alone, the average selling price for a home in B.C. fell 3 per cent to $498,205.
That decline is actually expected to continue, especially in the Vancouver area, as Richmond and other top-tier markets grapple with a slowdown in high-end home sales. But the fallout won’t be limited to brokers working the tony end of the market, with most market forecasters pointing to overvaluation across Metro Vancouver.

The situation represents a double whammy for Vancouver mortgage professionals as they move to reconnect with their subprime roots as a way of compensating for the dwindling number of A deals.
Still, for now the number of subprime deals is expected to grow in the short-term as homebuyers, with more than 20 per cent equity in the homes or more than 20 per cent put down, find themselves shut out of the A market by tighter lending guidelines courtesy of the Office of the Superintendent of Financial Institutions.

Market slumps in December

_{By Vernon Clement Jones | 14/01/2013 8:00:00 AM | 1 comments} 

 

 Market slumps in December

 

There’s yet more indication brokers will see a quiet winter, with national home sales slipping 17 per cent in December from a very active year ago.

"National sales activity continues to hold fairly steady at lower levels since mortgage rules were changed earlier in 2012, said CREA President Wayne Moen Tuesday, “but there are still some real differences in trends between and within local housing markets."

More generally, national home sales edged 0.5 per cent lower in December 2012 compared to November, and actual activity was down 17.4 per cent year-over-year.

The one bright spot for brokers, perhaps, is the falling number of listings, said one analyst. They dropped 1.3 per cent from November to December, something that may encourage buyers now in the marketplace to act sooner rather than later.

Still, the challenge of new mortgage rules introduced in July remain, with many brokers now writing off the possibility of a repeat of last winter’s brisk activity. That activity was spurred, in part, by unseasonably warm weather.

In 2012, a total of 453,372 homes traded hands over the Canadian MLS system, which represents a decline of 1.1 per cent from 2011 and 1.4 per cent below the 10-year average.

The downward trend is actually in line with projections for this year, with Jim Flaherty’s new mortgage rules bearing the brunt of any blame.

More good news for brokers is that those rules aren’t expected to tighten any further this year. The Finance minister has suggested the government is satisfied that its move to lower the amortization on insured mortgages, along with other key changes – in addition to OSFI’s new lending guidelines – have already begun to de-accelerate consumer debt.
 

'Pleased' Flaherty meet displeased brokers

_{By Vernon Clement Jones | 15/01/2013 8:00:00 AM | 0 comment}

_{"Pleased" Flaherty meet displeased brokers!} 

Finance Minister Jim Flaherty says he’s happy increases in home prices have started to slow, but is relatively mute on a much bigger concern for brokers – the falling number of sales.

“I don’t mind prices coming down a bit,” he said in an interview with The Globe and Mail Tuesday. “I am actually pleased, because we needed to take some of the steam out of the rapid increases in prices in the residential housing market, particularly the condominium market.”

According to new CREA numbers released Tuesday, 20,538 homes sold over the Multiple Listing Service in December -- down 17.4 per cent from a year ago. That amounts to the biggest year-over-year drop since July, when tighter mortgage rules took effect.

The sales slump represents a different and more urgent story than the 0.5 per cent drop in national home prices from November to December, say brokers. Actually, on a year-over-year basis, the national average price rose 1.6 per cent last month.

That softening in home prices is good for the health of both the market and the Canadian economy, says Flaherty. But brokers continue to direct Ottawa’s attention to the slowdown in sales and the very real impact that has on GDP growth and, ultimately, prices.

As recently as last month, CAAMP officials reiterated those concerns in talks on Parliament Hill.
“We will obviously discuss the government’s recent changes along with the need to maintain a healthy housing and mortgage industry in Canada,” the association’s CEO Jim Murphy told MortgageBrokerNews.ca in December.

A large part of CAAMP’s Ottawa presentation was its Annual State of the Residential Mortgage Market report, highlighting the sound management of that secured debt by most Canadians.

The hope continues to be that Ottawa will hold fire on any additional changes to the mortgage rules and the OSFI lending guidelines, also tweaked last year.

Still, brokers continue to express real concern that Flaherty may move to further batten down the hatches if sales begin to climb in the second half of 2013.

First-Time Home Buyers Now Qualify for Additional Tax Credits

First-Time Home Buyers Now Qualify for Additional Tax Credits

Beginning in 2009, the Federal government announced adjustments to the rules for Government-backed insured mortgages. These changes will significantly reduce the total interest payments Canadians make on their mortgages, promote saving through responsible home ownership, and limit repackaging of consumer debt into mortgages guaranteed by taxpayers. A new First-Time Home Buyers’ Tax Credit, in the year the home is purchased, was introduced for first time home buyers that buy a qualifying home.

What is the First-Time Home Buyers’ Tax Credit (HBTC)?

The HBTC is a non-refundable tax credit for certain homebuyers who acquire a qualifying home after January 27, 2009.

How is the First-Time Home Buyers’ Tax Credit Calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2011) by $5,000. For 2011, the credit was $750.00. This may change in the future based on the income tax rate. If the total of your non-refundable tax credits are more than your federal income tax, you will not receive a refund for the HBTC.

How to Qualify for the First-Time Home Buyers’ Tax Credit

• You or your spouse or common-law partner acquired a qualifying home; and
• You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
• If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount if we ignore that costs for attendant care or care in a nursing home were claimed as medical expenses on lines 330 or 331.

What is a Qualifying Home?

A qualifying home is a home located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as apartments in duplexes, triplexes, fourplexes, and apartment buildings all qualify. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

Important Things to Remember

The home must be registered in your or your spouse’s or common-law partner’s name in accordance with the applicable land registration system. You do not have to submit documents supporting your purchase transaction with your income tax and benefit return. However, you have to make sure that this information is available if the Canada Revenue Agency asks for it.

Market perceptions weigh heavy on brokers

 _{http://www.mortgagebrokernews.ca/news/breaking-news/market-perceptions-weigh-heavy-on-brokers/171164/}

_{Vernon Clement Jones | 09/01/2013 8:00:00 AM | 0 comments}

The perception that now’s just not the time to buy – regardless of low interest rates – may be the biggest hurdle facing brokers this year, suggests new research.

“These metrics paint a picture of a nervous Canadian public who does not know what to expect from the economy or the housing markets,” reads last month’s MortgageInsights from CAAMP and based on its Fall 2012 Consumer and Industry Surveys."For mortgage professionals, it is important to understand this dynamic as you engage with your customers."

That's likely to challenge some brokers.

While the survey suggests 88 per cent of industry insiders endorse the idea that "now is a good time to buy," only 61 per cent of consumers do. That last figure actually representsa decline from the 64 per cent who voiced that sentiment in 2011, a year marked by even more economic uncertainty.
The waning public confidence comes despite rock-bottom interest rates and the secure financial footing of many consumers.

Assuaging client concerns and coaking fencesitters into the market has increasingly preoccupied mortgage professionals as they see preapprovals languish and expire.

That isn't likely to change as consumers digest what if any impact new mortgage rules and lending guidelines have on their own eligibilty.

But even the very eligible may represent a tough sell.

"Even though their individual financial situations may be strong, it is likely that given their economic concerns, your clients are also looking to you to provide them with reassurance that the mortgage option you are recommending to them will fit all of their needs," concludes the report, "and will remain a good fit for five years (or the term of the mortgage),"

Let's revisit Credit Bureaus and it's impact!

_{The following excerpt is borrowed from the following article:} 

_{http://www.mortgagebrokernews.ca/news/newsletter/171172/} 

A September 2012 Harris/Decima survey asked Canadians how confident they were about being able to raise $2,000 within a month if an unexpected need arose. Some 92 per cent said they’d have to consider borrowing to come up with some of the cash, and only 45 per cent said they’d never faced a debt problem. The poll results come as Canadian debt-to-income ratios sit at a record 152 per cent and officials issue warnings to start paying down debt before interest rates rise. But those survey findings suggest consumers have been unmoved by warnings and that the resulting financial burden could sink some households.
This is the third part of a CMP series regarding debt solutions. Based upon discussions our team has had with mortgage professionals across Canada, there are many myths regarding how debt solutions affect Canadians’ finances and their credit profiles. We hope to clarify these myths so as a trusted adviser you are better prepared to assist your clients.



Debt Management Plans  

Impact on credit bureaus: Enrolled debts are reported by lenders to credit reporting agencies as R-7 or I-7.  As per their purge rules, Equifax will remove a debt in a DMP three years after completion and TransUnion will remove it two years after completion.

The truth on Debt Settlement  

Impact on credit bureaus: If successful, a debt is reported by lender as “settled” and rated as R-9 or I-9. As per Equifax’s and TransUnion’s purge rules, the debt will remain as a trade line for six years from the date that the final payment is reported as “received,” whether settled or not.

The truth on Consumer Proposals

Impact on credit bureaus: Debts included in a proposal are rated R-7 or I-7 and remain on credit reports for 3 years after completion per Equifax and TransUnion’s purge rules.  
The truth on Bankruptcy

Since September 2009, a first bankruptcy with surplus income as defined by the OSB guidelines is not discharged for 21 months.  Canadians filing bankruptcy can keep assets exempt from seizure as set by the resident province or territory. Since 2008, RRSP contributions more than 12 month prior to filing any insolvency are exempt from seizure.  Many are able to keep “non-exempt” assets by paying the trustee the asset value on a payment plan. A second-time bankruptcy will not be discharged for at least 36 months.
Impact on credit bureaus: Per Equifax and TransUnion’s purge rules, first-time bankruptcy remains on credit reports for six years from the date of discharge and a second bankruptcy remains for 14 years.

The truth on Statute of limitations:

Each province’s statute of limitation determines how long a lender has to take legal action to collect consumer debt.  For example, in Ontario and Alberta lenders cannot obtain judgment where nothing has been paid within 24 months prior. Other provinces vary from three to six years.  Note the debt remains on credit reports for six years from date of last payment or activity per Equifax and TransUnion collection purge rules.

Student Loans

Do you know someone with Student Loans?

Please note the following important information, as per Rumanek Blog - Student Loans

Student loans are provided by the Government to encourage persons interested in pursuing a post-secondary education. Federal and Provincial Governments work with each other under a contractual framework for receipt and disbursement of funds by the Province for this purpose.

Re-payment of Student loans

The repayment period for the OSAP loan is 10 years. This can be extended for a period of 15 years by application and by demonstrating sufficient cause by the applicant. The student loan however, will become due and payable only after the student becomes a graduate. This is a key feature that makes Government programs such as OSAP more appealing to students as compared to loans from a private institution, where at the minimum, interest portions on the loan amounts become due immediately.

Students who take OSAP are provided with a grace period of 6(six) months after the time they cease to be students. The Loan becomes payable after this period.

Nevertheless, re-payment of student loans remains mandatory. Stringent measures are adopted by the Government to ensure re-payment of student loans, as failure to repay student loans jeopardizes the loan system resulting in large deficit of government funds. This hinders the ability of future students to benefit from government financial aid.

Non-repayment of student loans can cause severe financial consequences and legal consequences such as garnishment of wages, and bad credit rating to defaulting individuals.
  
View of the Courts
Obtaining a post-secondary education is considered a long term asset as it will continue to generate income. The integrity of the Bankruptcy and Insolvency system would be undermined if the debtor were to retain the entire benefit of the asset without the creditors having a share. This was held in a decision of the Court of Queens Bench of Alberta Re Dolgetta at para. 45 (2008 ABQB 556 Canlii).[1] This view is usually followed in cases where the debtor evades repaying the student loan, despite having received employment as a result of the education.

Please contact the offices Of Rumanek & Company Ltd, for further information.

DISCLAIMER: THIS ARTICLE IS ONLY FOR INFORMATIONAL PURPOSES ON THE GENERAL APPLICATION OF BANKRUPTCY LAW. THIS ARTICLE IS NOT MEANT TO BE LEGAL ADVICE AND SHOULD NOT BE TREATED AS SUCH. Please contact a licensed bankruptcy trustee or a licensed bankruptcy lawyer in Ontario for any advice.

Manulife and brokers officially partner

_{By | 06/01/2013 3:00:00 PM | 0 comments}

Manulife has now completed acquisition of the channel’s largest creditor insurance provider, at the same time restating plans to expand broker business.

"We look forward to continuing to deliver excellent solutions to both the mortgage industry and Canadian borrowers and to further building a leadership position in the mortgage creditor marketplace, particularly among mortgage brokers," said Wally Thompson, Manulife’s VP of business development. “Strategically, this transaction positions us well for growth in a highly-stable, key Canadian market.”

The assessment follows the insurance giant’s completed purchase of Benesure Canada, a transaction positioning Manulife as Canada's largest provider of mortgage insurance solutions for mortgage brokers, “with revenue premiums in excess of $65 million.”

The deal initially raised some broker eyebrows, chiefly concerns about the potential poaching of clients.

Manulife was quick to answer that speculation.

“We want to reassure those who have such concerns that they have nothing to worry about,” said Elizabeth Elliot, VP of marketing for Benesure, now under the insurance and mortgage giant’s umbrella. “It is in Manulife’s and Benesure’s interest to ensure the channel continues to flourish with MPP.”

Elliot also points to Manulife’s strong track record of working closely with advisors and intermediaries.

“They are governed by privacy rules and have always abided by these,” she said. “In doing so, they understand, respect and honour business relationships and client information that Benesure has developed.”

Still, Manulife has suggested it is open to exploring the idea of mortgage origination by brokers, a move many within the channel welcome.

A 2013 forecast for brokers

A 2013 forecast for brokers

http://www.mortgagebrokernews.ca/news/newsletter/171136/

_{By CRE | 02/01/2013 6:00:00 PM | 0 comments}

 

The verdict is in: 2013 may not be a great year for brokers, but it won’t be the worst.

The RE/MAX Housing Market Outlook 2013 touts “moderation, not correction” ahead for 2013, a unsurprising projection given the impact lending rules had on the latter half of 2012.

“Despite all the negativity surrounding residential real estate, the sky is not falling,” said Gurinder Sandhu, executive VP and regional director of RE/MAX Ontario-Atlantic Canada. “Home sales have moderated, but remain within healthy levels.”

The report forecasts that 454,000 homes will change hands in 2013, falling one per cent from the 2012 national performance. Of less concern for brokers is that the average house price is by one percent, rising to $366,500.

Many markets are expected to remain on par with 2012 statistics, with particular strength noted in the West. The Greater Vancouver Area is expected to see the biggest pull back, after waning foreign investor interest crippled sales in late 2012.

Brokers can expect the most business from move-up buyers, with first-time homeowners moved to the sidelines for much of the year. That reflects late 2012.

 "By mid-year," reads the report., "the third round of CMHC mortgage tightening had a noticeable impact on housing markets, pushing homeownership beyond the grasp of many first-time buyers.”
Still, brokers shouldn't despair.

According to RE/MAX Regional Executive VP for Western Canada Elton Ash, homeownership is still at the forefront of Canadian’s minds.

“There’s no denying the universal appeal of bricks and mortar," he said. "Canadians believe in homeownership. The stability of real estate over the long-term continues to fuel its appeal.”

 

http://www.bloomberg.com/news/2012-12-31/nanos-poll-finds-canada-consumer-confidence-rises-on-real-estate.html 

Canada Consumer Confidence Rises on Real Estate: Nanos

By Theophilos Argitis - Dec 31, 2012

Canadian consumer confidence rose for the first time in three months in December as homeowners became more certain about the value of their properties, according to a Nanos Research poll. 

The Nanos Economic Mood Index -- an aggregate of survey responses on the outlook for the economy, job security, personal finances and real estate -- rose to 101.9 in December from 101.0 a month earlier. The index averaged 101.7 over the past six months, compared with 105.8 in the first half of 2012, as the country’s economy stalled. 

Data released this month suggest tepid growth for the world’s 11th largest economy in the fourth-quarter. Canada recorded inflation of 0.8 percent in November, the slowest in more than three years, while gross domestic product rose 0.1 percent in October after stalling a month earlier. 

Measures calculating optimism about housing prices rose to the highest since June, according to today’s Nanos poll. The balance of opinion between those who say they expect real estate values to increase in their neighborhood and those who believe they won’t rose to 20.6 in December from 17.1 in November. 

The balance of opinion between those who say the economy will be stronger in the next six months relative to those who believe it will be weaker fell to 2.1 in December from 2.8. 

Measures calculating personal finances and employment showed little change from levels that are the worst since the first half of the year. The balance of opinion between those who say their jobs are secure and those who believe they are not rose to 30.6 in December from 29.7 in November, while net perceptions on personal finances fell to -16.3 from -16.1. 

The Nanos poll of 1,000 Canadians was taken between Dec. 19 and Dec. 20. 

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net
 
To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

Happy New Year, BFS clients

BFS Clients.

http://www.mortgagebrokernews.ca/news/newsletter/171125/

_{By Vernon Clement Jones | 01/01/2013 4:00:00 PM | 0 comments}
 
Ottawa's move to increase by $50-billion the amount of residential mortgages it will back through Genworth and Canada Guaranty may ultimately accrue to the benefit of alternative clients, suggest some brokers.
"The maximum outstanding insured exposure for private insured mortgages will be increased from $250 billion to $300 billion," reports the larger of those two private default insurance providers. "The current risk premium is being replaced by a risk fee payable by the company to the federal government equal to 2.25 percent of gross premiums written."
The move effectively deepens the bulk insurance pockets of both Genworth and Canada Guaranty, and could, argue some channel veterans, encourage the insurers to provide more of those funds to lenders looking to minimize their conventional lending exposure.
Ostensibly, that could work to the advantage of brokers finding it increasingly difficult to arrange loans for self-employed clients, said one mortgage broker Wednesday. He points to last year's pullback by several lenders when the government announced it would keep CMHC's  $600-billion cap in place.
In fact, Genworth may, in fact, already benefited from that decision, which effectively limited lender access to portfolio insurance.
“There is plenty of runway." said Genworth CEO Brian Hurley last spring, pointing to the insurer's willingness and, indeed, its ability to write new bulk insurance business.
Genworth, including Canada Guaranty, will collectively tap into the government-backed fund now capped at $300 billion – and not the CMHC’s $600 billion pool, now nearing its lending limit.

But all lenders are themselves working with new, tighter guidelines from the Office of the Superintendent of Financial Institutions, likely to act as a limiting factor for many BFS deals -- high ratio or otherwise.