Will OSFI regulations really strip consumers of choice?
The Office of the Superintendent of Financial Institutions has been repeatedly excoriated by mortgage industry veterans for its intervention, but not everybody believes the lending regulations will spell doom and gloom. On the one hand, alternative lenders and mortgage investment corporations will see business surge, but on the other hand, it will likely be to the detriment of monolines and consumers – the latter of whom will have to qualify for uninsured mortgages at higher rates. Yet according to Susan Thomas, vice president of operations at Dominion Lending Centres Neighbourhood, most MICs are highly regulated and, ergo, practice judicious underwriting. “If you have prudent underwriting practices, you should be all right,” she said. “The other thing to consider is these are fixed income securities – there’s an asset tied to it – so your risk is less. Our investors are all accredited investors, so they understand the risk. We make sure they meet stringent criteria.” Source:mortgagebrokernews.ca. Click here for rest of article