Important Industry Update

During the past week, there has been extensive media coverage and announcements affecting the mortgage industry.  OSFI's lender audits on NIQ (Non Income Qualified) products and news that the government guaranteed mortgage insurance ceiling is approaching its limit directly affect the type of mortgage products that can be offered and the way in which mortgages are funded. CAAMP is actively engaged in these issues.  We are:  · Speaking with lenders, insurers and brokers to evaluate the facts and their implications; · Communicating regularly with the Minister of Finance's Office in Ottawa; · Retaining a Government Relations firm in Ottawa to work in collaboration with us; · Conducting focused Roundtable discussions with brokerage owners; ·  Attending meetings with government officials in Ottawa to increase their awareness and understanding of our industry. CAAMP is advocating the following fundamental messages: · Government has already tightened lending criteria significantly and mortgage volumes have decreased; · The issue of lenders and the mortgage insurance ceiling has nothing to do with lending practices, but rather liquidity and capital requirements; · Arrears and defaults in Canada remain low and are declining; · Homeowners have significant equity and are paying down their mortgages; · As an industry, we are vigilant and caution against further measures that could precipitate a weakening of the housing market. A detailed set of messages to share with your local media or Member of Parliament will be forwarded in due course.  We will keep you informed of activities as and when they occur.