Hafshik…I think you have that reversed. Most fraud would come from the broker channel, not the bank branches. I work in the industry and when I have done channel checks in the past on adjudication criteria, guess which channel had significantly more concerning practices? Yup, the brokers. I don’t know you personally but you very well may be a reputable broker, but the fact of the matter is that some of your counterparts in the industry are far from reputable and have been helping borrowers with income falsification for many years.

aka know as the lowest avg income households in burbs of the GTA =O

What? CMHC would definitely not agree with you.
https://www.cmhc-schl.gc.ca/en/co/buho/plmayomo/plmayomo_004.cfm

Also there is a consequences section for you:
Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be liable for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.

No problem. Mark. Home Capital near-collapse was definitely a warning sign and I believe this story is not over yet. I deeply respect Warren Buffett but betting on subprime lender in an overpriced and overleveraged RE market is beyond my understanding. Time will tell if this bet was correct.

Now we have Laurentian Bank, just a while ago we had syndicated mortgages fraud arrests – those warning signs are everywhere.

There are 2 essential elements of criminal fraud: Deception and Deprivation. Both must exist to have “mortgage fraud”.

Misrepresentations made on a mortgage application don’t become “mortgage fraud”, unless the misrepresentations cause the lender to suffer some sort of financial loss.

Thanks Grizz. I haven’t heard about that “dumping properties” think, thanks for sharing that. It’s a big development and definitely a “smart money” move.
I heard about CEO of one of the big 5 banks dumping own shares recently.
Unfortunately I can’t find any links in the news for that.

Thanks @Xelan_gta, it does appear we have the declines without the other deteriorating metrics. In that way the house prices look to have rolled over ala 2007, but other metrics ~2005 as you mentioned. IMO this looks very bad for the housing market because these other metrics could spillover at the worst possible time.

@Grizzly Gus Yes, other noteworthy dates:
-January 11, 2008 – Bank of America announced that it planned to purchase Countrywide Financial
-March 2008 – Bear Stearns ‘sale’

Interesting to note that in the case of Home Capital, we did in a way have a ‘moment’ May 2017, with the Warren Buffett LOC, etc. shortly after.

Good info Xelan