Comments on: Canadian Mortgage Brokers Have “Riskier” Clients, Exploited For More Profit: BoC

By: toka

toka — Sun, 19 Feb 2023 20:17:46 +0000

Why is the taxpayer even guaranteeing mortgages against default in the first place.

Banks make money issuing these sub-prime mortgages, yet the taxpayers are made to pay when these mortgages default.

We need to get rid of central banking all together. Its turned into a means of privatizing profits and socializing losses.

The market should price real estate and the risk of mortgage defaults, not the govt which gets taken over by banks to guarantee their bets.

By: Rick Abrams

Rick Abrams — Wed, 15 Feb 2023 20:15:50 +0000

What could go wrong? It’s not like this practice touched off a worldwide crash in 2008.

By: David Todtman

David Todtman — Wed, 15 Feb 2023 16:41:11 +0000

One wouldn’t expect the mortgage broker (Mr. Butler) quoted in the article to have read the section in Marx’s Capital volume one, where Marx describes in detail the ways in which profits are boosted by reducing the difficulty and time it takes to produce and sell a commodity.

However, Mr. Butler is no-doubt familiar with the common aphorism, that “Time is Money.”

So it is rather surprising that Mr. Butler thinks “Some brokers steer clients to the most expensive solution because it’s less work…. The bastards are just lazy” and “it’s not always a case of greed.”

Such a neat encapsulation of the reckless behaviour of mortgage brokers simply obscures a truth of this dangerous industry.

Manipulating customers into products that are more quickly produced and sold is almost always more profitable for the broker. The faster they can push a customer through their sausage machine, the more sausages they can produce in a given time period.

Time is money, Mr. Butler. We might also add that laziness is money too.

By: Ray

Ray — Tue, 14 Feb 2023 21:20:42 +0000

I knew brokers who could get you a 2 million dollar mortgage overnight for a fee of course. They had people on the inside who worked in the banks. Everyone got paid and you get the mortgage. The question is, can you afford the payments at the end of the month.