CMT – Factory Lending

Some of the new mortgage policies decreed by Ottawa are bad for credit unions and their customers.Factory-Lending

That’s the gist ofthis report recently issued by Canada’s credit union system.

Among other things, the Credit Union Central of Canada (CUCC) says the federal government’s rules promote “commoditization” of mortgages and fail to allow for low-risk lending that falls outside of regulators’ defined guidelines. The paper—one of the more publicly critical essays on federal mortgage regulations—suggests Ottawa’s rules essentially result in “factory lending.”

CUCC floats some compelling ideas on a wide swath of mortgage topics. These are the highlights (our comments in italics):

Continue reading “Factory Lending” »


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