Despite the falling probability of another series of rate hikes from the central bank, Hogue said that policymakers will likely look to “maintain a high degree of stringency” to keep systemic risks to a minimum amid economic uncertainty. was initially put in place in 2018 as a way to sure up mortgage underwriting practices against concerns regarding rising home prices and high household debt.
“This rate has frustrated potential homebuyers with less than stellar borrowing credentials—some of whom are no longer able to get a mortgage from federally-regulated lenders . It’s also impacted stronger borrowers by reducing the maximum size of mortgage they qualify for,” said Hogue. “Clearly the stringency of the test has significantly increased. Has it become overly stringent in the current circumstances?” he questioned.
Yes. Increase it!
Yeah they did review it, and they left it unchanged! Haha
In 2020-2021 people bought houses based on CERB and EI while they were unemployed so worst time is coming for banks so stay away from bank stocks
Despite of mortgage stress test people borrowed money by manipulating income & fraud by mortgage broker in 2019-2021 to n low rate environment and banks never checked or confirm income and give money so mortgage stress test was not working against fraud
Yup, time to bolt the barn door
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