Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.
Issue link: http://digital.canadawide.com/i/842412
12 | spring 2017 cmba-achc.ca CmB magazine H ello, fellow mortgage brokers and agents across the country. In light of the recent misfortunes suffered by one of our own last week (and please make no mistake about it, Home Trust is one of our own), I thought I'd chime in to attempt to bring some calm to the storm aer spending three days last week taking calls and responding to emails from our mortgage agents, industry associates, lenders and clients, all of whom expressed concern for the unknown. Let's take a step back and collect the facts that we are aware of, before casting aspersions or coming to premature conclusions on what our loyal, long-standing and very much needed industry partner's fate will be. 1) Aer a long, drawn-out investigation into $2 billion of their existing book of business, Home Trust admitted a couple of years back that they uncovered, as I understand it, approximately 10 per cent with irregularities related to income, which incidentally have and continue to perform well regardless. It's also important to note that Genworth just last week put out a press release confirming that Home Trust's portfolio is performing at less than industry average arrears, a statement which in itself speaks volumes. 2) Home Trust and many others were in far worse position back in the early '90s, with interest rates running at double digits when the real estate market curve was headed straight down on a 90-degree angle, and the Canadian economy was in a massive mess. e result: Home Trust managed to pull through and built an even stronger business. 3) Income irregularities on files for shelter are certainly not isolated to Home Trust, or the mortgage broker community alone for that matter. Banks themselves have had to deal with issues on irregularities from time to time over the years, but somehow Home Trust was viciously and specifically targeted by short-selling, profit-driven U.S. hedge funds that have zero regard for the serious ramifications they have created with their over sensationalism for the Canadian consumer and the mortgage industry by actively calling mortgage brokers, Home Trust employees past and present, regulators, the media and who knows who else, all in the hopes of digging up dirt for the sake of pure greed! Wait, haven't we seen this movie before with American-style hedge funds betting heavily against their own real estate market only to realize its ultimate collapse in 2008? Does anyone actually believe this blatant, irresponsible disregard for our lender partners will stop at Home Trust? ink again if you do! 4) Weren't the regulators quite happy with the cooperation of Home Trust during its challenges, and the many steps taken to put stops in place to avoid a repeat of any such occurrences? I would suggest they were, because if not, why the approval by OSFI for the purchase of CFF Bank by Home Capital Group last year? Would this not serve as validation enough that the regulators were comfortable with HCG's financial stability, letters CMBA MeMBers' views letters to the editor Home Trust and the Need to Stay Calm and United