The writer is a passionate observer of the Vancouver mortgage scene. He is a TMG mortgage broker in Vancouver with a focus on bad credit mortgage refinance. The shift in the market has allowed him to help people link up with bad credit mortgage lenders.
No regulations require a residential mortgage lender to make a particular loan, nor do any provide specific underwriting guidelines. Regulations do make it clear, however, that mortgage lenders have a responsibility to attempt to satisfy any request for a mortgage loan, as long as the risk is analyzed fully and deemed acceptable. The desire to make loans must be balanced by a mortgage lender’s fiduciary responsibility to protect whoever funds the loan: depositors, shareholders, or secondary market investors.
All lenders, of course, share the danger that even properly underwritten mortgages may become delinquent. The expense incurred in collecting these funds, or the losses suffered if uncollected, greatly exceed the income generated from originating and servicing the loan-that is how costly the collection process is. If several defaults occur, the costs of either curing the defaults or foreclosing could result in severe losses to the point where it jeopardizes the solvency of the lender.
Mortgage brokers and mortgage bankers have a unique problem. Unlike depositbased mortgage lenders, mortgage brokers and mortgage bankers underwrite a loan knowing that the loan must be sold to a permanent investor. If a poorly processed or poorly underwritten loan is not secondary marketable at a reasonable price, it may result in considerable loss to a mortgage banker or broker. Since a deposit-based mortgage lender has the option of placing a mortgage into its own portfolio (instead of selling it to an investor), its loss potential for a poorly processed/underwritten mortgage is less than that of a mortgage banker
The BC mortgage scene is the life of the writer. His focus is in bad credit mortgage Canada applications. Bad credit mortgage lenders are choosier these days, it is his job to make it happen.