Brokers support CMHC foreclosure policy

Brokers support CMHC foreclosure policy

_{By Donald Horne | 27/02/2013 8:00:00 AM |} 

 

 _{http://www.mortgagebrokernews.ca/forum/brokers-support-cmhc-foreclosure-policy/171459/}

 

CMHC’s request Realtors refrain from labelling properties as "in foreclosure" on MLS was, in fact, designed to protect the market from the kind of collapse the U.S. is still recovering from, suggest brokers supportive of the policy.

“If the CMHC disclosed all of their foreclosures to a client, they would get low-balled on all the offers,” says Bruce Flanagan, with Verico Premiere Mortgage Centre. “Why should they (the investors) take a loss on the property – and by extension, the taxpayers as well?”

CMHC, as the leading provider of mortgage loan insurance and mortgage-backed securities, effectively controls 75 per cent of the default insurance business. This year, its nationwide policy, or request, was challenged by some Quebec Realtors who feared they would be guilty of an ethical breach in keeping consumers in the dark as to whether properties were under power of sale.

Those concerns were brought to the Quebec Federation of Real Estate Boards, which in turn challenged the CMHC.

Ultimately, CMHC and the Quebec Federation resolved the conflict by no longer making the foreclosure disclosure mandatory, based on the seller’s instructions.

Still, many industry players, including brokers, argued the original CMHC policy provided the housing market more protection, especially if the economy hits a rough patch and defaults rise. Any appreciable rise in "foreclosure" listings on MLS might further cool sales and challenge buyer confidence, say proponents of the policy.

Centum Agents Everywhere!

 Centum Agents, have you registered for the Centum Awards & Recognition Kick Off 2013 taking place at the Toronto Congress Centre, 650 Dixon Road, Toronto on Tuesday March 5th?

Today's your last day to register.

Go to your OnlineOffice at http://onlineoffice.centum.ca/, click on Calendar of Events and follow each step.

Hope to see you all there! 

 

Credit Card Tips 2

Consider whether you need a specialized credit card

In addition to standard, gold and platinum cards, there are some specialized credit cards that cater to special needs. 

Some of these specialized cards include:
 
Secured credit cards

A secured credit card is a card that requires you to pay the issuer a security deposit before you can use it. Your credit limit is normally set as a percentage of your deposit (usually 100 percent or more). 

For example, if you pay a security deposit of $500, you would normally get a credit limit of $500 or more.

You might consider applying for a secured credit card if:

     • you have no credit history in Canada,
     • you’ve had credit problems in the past and want to rebuild your credit score; or
     • you've filed for bankruptcy in the past

This excerpt was taken from the publication called "Choosing the Right Credit Card For You" by the Financial Consumer Agency of Canada.

You can find more information at the Financial Consumer Agency of Canada site at http://www.fcac-acfc.gc.ca/eng/index-eng.asp.

Credit Card Tips 1

Inactive credit card account fees:



If there has not been any activity on your credit card for a period of time – usually at least a year – some credit card issuers will charge you a fee for maintaining an inactive account, or may even close your account. If you no longer need your credit card, make sure you contact your card issuer to cancel it and keep a record of the cancellation.
 
Simply cutting up your card does not automatically cancel it, even if your credit card has expired.
 
You may still have to pay an inactivity fee, since you did not cancel the card.

This excerpt was taken from the publication called "Understanding Credit Card Fees" by the Financial Consumer Agency of Canada.

You can find more information at the Financial Consumer Agency of Canada site at http://www.fcac-acfc.gc.ca/eng/index-eng.asp. 

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.