After reviewing the new B-21 rules, the real estate industry as a whole can relax a little more, for now. Most of these new rules apply to insurers and do little to tamper with the housing market as a whole.
Most of the new guidelines discuss how insurers can limit their risk factors with banks, credit unions, and financial corporations who provide mortgage financing. It states that it is the insurers due diligence to ensure the mortgage financing provider meets all guidelines and follows procedures. This will means insurers cracking down on high ratio deals more so than ever. Although this may sound alarming to us in the mortgage industry, it immolates the B20 rules, so nothing we have not seen before. The whole idea behind this is to prevent as much mortgage default as possible.
Contact Robert Clancy today to find out if you require an insured mortgage or not!