The Time To Intervene Was Years Ago
The Globe and Mail reports from Canada. “Vancouver-area banks reported suspicious transactions involving Mainland Chinese clients 17 times more often than those tied to citizens of any other outside country in recent years. Despite the legal requirement to disclose such transactions, Canadian banks can still process them and do not have to shut down the accounts. An earlier Globe investigation quoted a court case that showed at least one Canadian bank helped clients wire-transfer money out of China. Christine Duhaime, a lawyer and expert witness on international financial transactions, said the numbers add weight to suggestions that international cash is having a trickle-down effect on the affordability in Greater Vancouver’s real estate market, where the average price of a detached home reached $1.58-million in November.”
“Ms. Duhaime said only the banks ‘know for sure’ if these transactions bring money into Vancouver’s housing market, but added that she can ‘only surmise pretty accurately that if the funds are from China and involve large volumes, they are for real estate purchases, because there is not much else foreign nationals from China buy in Canada that would trigger a [suspicious transaction report].’”
“‘There’s no accountability, there’s no deterrence,’ said financial crimes specialist and former RCMP investigator Kim Marsh, who is based in Vancouver and has worked with Chinese institutions to recover laundered assets. ‘If you’re talking about Chinese nationals buying property here, you can’t tie it to a crime because you don’t know what happened back in China and how they got the money,’ he said. ‘You can determine if it’s suspicious or not, the guy was a pig farmer 10 years ago and now he’s a multimillionaire.’”
The Alaska Highway News. “If you’re looking for an apartment in Dawson Creek, there’s plenty to choose from. Nearly 15 per cent of apartments here are sitting vacant—the highest rate in B.C.—according to the Canada Mortgage and Housing Corporation (CMHC). Dawson Creek has an apartment vacancy rate of 14.6 per cent, up from 5.3 per cent from this time last year. Fort St. John, meanwhile, came in second in B.C. with a vacancy rate of 12.1.”
“Vacancy rates may actually be higher than they appear in the CMHC data, said Li-Car property management group partner Lita Powell. Powell, a former CMHC employee, said the data doesn’t take into account some small rental units. As well, rooms only count as vacant if they’re move-in ready. ‘(The CMHC asks) ‘is this unit ready to move into today? If we respond ‘no it needs to be cleaned’ or ‘no it needs steam cleaning,’ then they don’t count it,’ she said. In Fort St. John, Powell estimated there are ‘approximately 600 rental units that were not included in that survey.’ If those 600 or so rental units were included, the vacancy rate would be much higher, she said.”
“On the other hand, she believes rents are likely lower than the CMHC figures. Her company has lowered rents in response to declining employment in the oilpatch. ‘In the fracking industry, the drilling, the pipeline, those jobs have really shrank,’ she said. ‘So the effect it has on the rentals is there are no longer the $38 to $45 an hour jobs out there that are going to pay the high rents.’”
From Fort McMurray Times. “New federal rules setting higher minimum down payments for mortgages more than $500,000 will not have a great effect on Fort McMurray’s real estate sector, local experts say. Federal finance minister Bill Morneau announced Dec. 11 that minimum down payments for new insured mortgages will increase from five per cent to 10 per cent on the portion of the mortgage above $500,000. The average price of a single detached home in Fort McMurray this November was about $690,000.”
“Before the rule change on Feb. 15, a minimum down payment of 5 per cent would be about $34,500. After Feb. 15, the portion of that mortgage above $500,000, ‑ $190,000 - would require a down payment of 10 per cent.”
“The increase in the minimum down payments is meant to ‘contain risks in the housing market, reduce taxpayer exposure and support long-term stability,’ a government press release said. ‘This is just not the right timing for the government to have done this,’ said Lynn Edwards, president-elect of the Fort McMurray Real Estate Board. ‘They’re going by Toronto and Vancouver and not taking into consideration other areas.’”
The Calgary Herald. “The crash in oil prices this year is hitting Alberta’s residential real estate market hard these days with Fort McMurray in particular feeling the pain – and a report released by the Canadian Real Estate Association forecasts continued volatility in 2016. New data by CREA indicates Fort McMurray, in the heart of the oil patch in the province, saw a 27.7 per cent year-over-year decline in MLS sales in November with the average sale” price plunging by 19.1 per cent to $519,193, which is down from $642,003 in November 2014.
“In November, MLS sales in Alberta were down 21.1 per cent from a year ago while the average sale price fell by 5.3 per cent to $385,430. The biggest decreases in sales were in Lloydminster (49.1 per cent), Grande Prairie (34.7 per cent) and Alberta West (34.4 per cent). Significant year-over-year average price declines were also felt in Lloydminster (14.5 per cent) and South Central Alberta (12.7 per cent).”
From CBC News. “I guess it’s not much use saying that something should have been done sooner. To some extent, you have to give the new federal government credit for making an attempt to put a lid on what so many experts fear is a Canadian property bubble. The debate now is what impact the move to increase down payments on houses worth more than $500,000 will have. Unlike other parts of the country, in the two most overpriced Canadian real estate cities, Toronto and Vancouver, homes priced over half a million aren’t just for the very rich.”
“Even for houses listed for more than $1 million, sellers offer deals that seem to be aimed at first-time buyers.”
“Just days ago the C.D. Howe Institute, a Canadian economic think-tank, warned that many first-time buyers are so overextended that they are teetering on the edge of ruin. ‘The share of households that have no financial buffer has been going up. There’s more financial vulnerability now than there was before,’ said C.D. Howe economist Craig Alexander.”
“CREA has repeatedly insisted that the Canadian housing market is not in bubble territory. If that’s true, the government’s attempt to take a little heat out of the market will merely discourage a future bubble from growing. On the other hand, if the many critics and international bankers are right about the Canadian property market, that it has already inflated into a bubble ready to pop, then the time to intervene was years ago. But we can hardly blame the current government for that.”
“The crash in oil prices this year is hitting Alberta’s residential real estate market hard these days with Fort McMurray in particular feeling the pain – and a report released by the Canadian Real Estate Association forecasts continued volatility in 2016. New data by CREA indicates Fort McMurray, in the heart of the oil patch in the province, saw a 27.7 per cent year-over-year decline in MLS sales in November with the average sale”
Screws gonna turn.
‘with the average sale” price plunging by 19.1 per cent to $519,193, which is down from $642,003 in November 2014′
‘The debate now is what impact the move to increase down payments on houses worth more than $500,000 will have’
A lot of listings at $499,999?
What’s funny about this article is it was in the Calgary Herald, but Fort McMurray Today didn’t really report it. I did see an article in the CH looking at how everybody is afraid of Tuesdays cuz that’s when you get fired.
All those people that cannot by in Vancouver can go over to Fort McMurry and get a place for almost nothing. Problem solved. /sarc/
A good place for you and the Lola character.
“Screws gonna turn.”
Yep… dog ‘em down tight… choppy seas ahead.
Oh the pain…
The Wall Street Journal
Oil Markets
Oil Prices Continue Falling on Strong Dollar, U.S. Crude Stocks
Decision to repeal 40-year ban on U.S. crude exports also unsettles market
Mexican state-owned oil company Pemex’s Tula refinery.
Photo: Reuters
By Georgi Kantchev and Jenny W. Hsu
Dec. 17, 2015 5:59 a.m. ET
LONDON—Oil continued its downward descent on Thursday pressured by a stronger dollar and a larger-than-expected increase in U.S. crude stockpiles.
The greenback strengthened, with The Wall Street Journal Dollar Index rising 0.4%, after the U.S. Federal Reserve raised interest rates by a quarter of a percentage point, in line with market expectations. As oil is priced in dollars, it becomes more expensive for holders of other currencies as the greenback appreciates.
Meanwhile, the 4.8 million-barrel increase in the U.S. crude inventories last week added to the oil glut and took the market by surprise as analysts had been expecting a decrease.
“The market was not given a breather as shortly after U.S. inventory data, the Federal Reserve announced that interest rates would increase,” said Daniel Ang, a Phillip Futures energy analyst.
Brent crude, the global oil benchmark, fell 0.5% to $37.18 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 1% at $35.17 a barrel.
…
“Just days ago the C.D. Howe Institute, a Canadian economic think-tank, warned that many first-time buyers are so overextended that they are teetering on the edge of ruin. ‘The share of households that have no financial buffer has been going up. There’s more financial vulnerability now than there was before,’ said C.D. Howe economist Craig Alexander.”
All the necessary household financial balance sheet rot is in place for Megabank, inc to execute a massive wealth transfer from Canadian homeownes to bank balance sheet asset columns in the next economic downturn, which is already underway thanks to the oil crash.
“All the necessary household financial balance sheet rot is in place for Megabank, inc to execute a massive wealth transfer from Canadian homeownes to bank balance sheet asset columns in the next economic downturn, which is already underway thanks to the oil crash.”
Yes, it’s time to get ready for Phase 2.
Phase 1: Suck ‘em in.
Phase 2: Suck ‘em dry.
‘The Teranet-National Bank index of house prices in the country’s 11 largest metropolitan regions rose 6.1% in November, yet only four cities—Toronto, Hamilton, Vancouver and Victoria—actually posted gains. Values in the other seven contracted. “The Canadian real-estate market already is in correction mode,” said Krishen Rangasamy, an economist at National Bank Financial in Montreal.’
‘One of the reasons officials in the George W. Bush administration were blasé about the housing bubble was because they believed surging prices in Arizona, Florida and California were the result of local factors, negating the perceived utility of a one-size-fits-all response by Washington.’
‘The Bank of Canada seems to see things roughly the same way. Poloz’s press conference followed the release of the central bank’s December Financial System Review, which concluded that a record household debt burden makes Canada vulnerable to a housing crash, although policy makers see little reason to think that will happen.’
‘The central bank has done some hard thinking about this issue. Along with the FSR, the institution released a study by three Bank of Canada economists that shows extreme indebtedness has doubled over the past decade: about 8% of households are carrying debt that is 350% or more of their gross income. (The authors chose 350% because that’s the level of debt at which borrowers tend to start missing payments.) Most of those households are in Alberta, British Columbia and Ontario. Alberta’s prospects are grim, but things are looking up in B.C. and Ontario. The Bank of Canada isn’t going to alter its stimulus plans for one province.’
‘The central bank’s debt study does suggest, however, that thousands of Canadians could be in store for some financial pain. The individuals in this group mostly are under 45 years of age, and their houses represent 90% of the value of their assets. They are also relatively poor and uneducated. The increase from a decade ago was led by debtors whose highest education was high school, suggesting they could struggle to find decent jobs in a weaker economy. Their newly purchased homes could become a tether that prevents them moving for work, if the value of the real estate drops below the cost of the mortgage.’
‘The Bank of Canada already is doing all it can to address such concerns by keeping borrowing costs low, making it easier for Canadians to stay ahead their debt payments. But dissuading households from taking on more debt will be up to others. Economic growth remains the central bank’s priority and it doesn’t intend to let theoretical worries about financial crises get in its way.’
“Economic growth remains the central bank’s priority and it doesn’t intend to let theoretical worries about financial crises get in its way.”
Economic growth is defined by, is measured by … higher prices.
Higher prices is powered by …
(ta da)
More debt!
For Mr. Banker it’s a lock!
Bahahahahahahahahahahahahaha … pukes work, Mr. Banker reaps.
“The increase in the minimum down payments is meant to ‘contain risks in the housing market, reduce taxpayer exposure and support long-term stability,’ a government press release said. ‘This is just not the right timing for the government to have done this,’ said Lynn Edwards, president-elect of the Fort McMurray Real Estate Board. ‘They’re going by Toronto and Vancouver and not taking into consideration other areas.’”
There is never a bad time to drum subprime lending practices out of the system.
“Toronto and Vancouver, homes priced over half a million aren’t just for the very rich. Even for houses listed for more than $1 million, sellers offer deals that seem to be aimed at first-time buyers.”
Change the names in this story to San Francisco and San Diego for a glimpse of California’s future.
‘Despite the legal requirement to disclose such transactions, Canadian banks can still process them and do not have to shut down the accounts. An earlier Globe investigation quoted a court case that showed at least one Canadian bank helped clients wire-transfer money out of China. ‘If you’re talking about Chinese nationals buying property here, you can’t tie it to a crime because you don’t know what happened back in China and how they got the money,’ he said. ‘You can determine if it’s suspicious or not, the guy was a pig farmer 10 years ago and now he’s a multimillionaire.’
Bahahahahaha … and just what sort of incentive should banks given to give a f*ck about the circumstances that shifts enormous quantities of money into their vaults?
Green is green.
‘Beijing’s new crackdown on UnionPay card abuse could take a toll on Macau’s pawnshops, which would have a spillover effect on the city’s casino gaming industry. Last week saw China announce a two-pronged attack on illicit use of the UnionPay system. Beijing is taking steps to ensure that all mobile scanning devices are properly registered, while Macau authorities have announced the real-time monitoring of transactions at high-risk merchants, such as pawnshops and high-end jewelry and watch retailers, particularly those adjacent to casinos.’
‘Macau’s pawnshops are infamous for deriving a significant chunk of their business volume through bogus transactions, in which cash advances are disguised as product purchases. Other scams involve the actual purchase of a high-value item via UnionPay, after which the customer returns the items in exchange for cash (minus the merchant’s commission).’
‘Deutsche Bank analyst Karen Tang estimates that such transactions account for between 10% and 15% of all cash accessed by gamblers in Macau. Tang believes this could account for 10% of all VIP gambling activity, and up to 30% of all premium mass activity (high-stakes players who don’t rely on junket operators to provide cash).’
‘Should Beijing’s new crackdown succeed in choking off this money supply, the effect on Macau’s fragile casino economy could be significant.’
‘In a somewhat related note, Macau’s Financial Intelligence Office reported a 3.8% rise in the number of suspected money laundering cases in the first half of 2015. The H1 figures put 2015 on pace to come close to breaking the annual record of 1,840 suspected money laundering cases set in 2012. The gaming industry was the source of nearly 75% of 2015’s cases, more than triple the financial industry’s 24%.’
‘Over 700 Chinese fugitives linked to financial crimes have been repatriated from foreign countries since April to stand trial at home, according to a senior anti-graft official. Law enforcement officers have also confiscated 1.2 billion yuan ($189 million) in illegal assets in the past seven months, he added.’
‘Among those brought back, 48 were from the United States, 34 from Canada, 19 from Australia and one from the U.K. The repatriations are part of a campaign code-named “Sky Net” enacted by the Chinese government targeting key officials who have fled overseas.’
‘According to Liu, these nations are “willing to help China to uncover more commercial bribery cases and refuse to offer safe havens for corrupt Chinese officials.” China and the U.S. have previously reached agreements on “some major cases,” he said, adding that talks are also ongoing between Chinese police and their counterparts in Canada, Australia and New Zealand in bringing the fugitives to justice.’
“With enhanced judicial cooperation, the fugitives’ happy days abroad will soon be gone,” Liu added.’
‘As a Quartz article documents, the list of “gone missing” bankers includes the likes of China’s equivalent of Goldman Sachs’s Lloyd Blankfein, Bank of America’s Brian Moynihan or Third Point’s Dan Loeb.’
‘At one point in my life I was teaching professional Chinese derivatives traders. At a bar I remember talking about the HSBC settlement in criminal behavior where bankers were caught laundering money for Mexican drug cartels and Iran and there was no individual criminal penalty. Talk driven by myself as well as the Chinese guests, ever subtle in intelligent ways, turned to China delivering a death sentence upon their bankers for financial crimes. In this case, the issue being discussed as causation for execution by the government was regarding a rather deadly swaps trade execution.’
‘The Chinese derivatives traders I taught were generally acutely intelligent and attune, but very rarely would they directly address an issue with their government. When I broached that fascinating but uncomfortable topic, someone made a surprising observation. “In the U.S. the control bankers have over the financial system is your society’s weakness.” The conversation subtly turned to the point at which China would be a world influence, which most having drinks that night generally anticipated. “We don’t want to make the same mistakes as the U.S.,” was one response from a group participant.’
‘The concern for banking control over the government and other societal apparatus is legitimate, China’s execution of their strategy might be too cruel and harsh, however, despite its effectiveness at intimidating its target.’
‘In 2013, illegal fund transfers out of China stood at a staggering $258 billion, making it the largest source of illicit financial outflow among all developing nations. And, according to a new report released Wednesday by the Washington-based Global Financial Integrity (GFI), in the 10 years through 2013, $7.8 trillion was drained out of emerging economies, including almost $1.4 trillion from Chinese shores.’
‘In 8 of the 10 years covered by the study, China was the leading source of illicit outflows among developing countries. In 2008 and 2011, Russia surpassed China.’
‘The bulk of $7.8 trillion of illicit money that exited developing nations over the 10-year period was disguised through “trade misinvoicing,” or deliberately misreporting the value of a commercial transaction, the report said. In China too, this practice accounted for a vast majority of illicit capital outflows — approximately 86 percent, according to some estimates.’
‘Recent reports suggest that money flowing out of China ends up in countries like Australia and Canada, where the real estate market serves as a means to launder money.’
“This does not happen by accident. Many countries and their institutions actively facilitate — and reap enormous profits from — the theft of massive amounts of money from developing countries,” GFI said, in the statement.’
Is $7.8 trillion a lot?
The bigger weakness is the control banks have over our political system. Our leaders basically have punted economic policy to the Fed.
“…money flowing out of China ends up in countries like Australia and Canada, where…”
where it goes to die.
“With enhanced judicial cooperation, the fugitives’ happy days abroad will soon be gone,” Liu added.
There goes the neighborhood.
“With enhanced judicial cooperation, the fugitives’ happy days abroad will soon be gone,” Liu added.
Some time ago on this forum I speculated that a possible outcome of Chinese purchases of expensive California real estate is property tax auctions. The investors get rounded up by China, humiliated and/or jailed, funds cut off… meanwhile, the property tax bills at the Santa Barbara beach house pile up unanswered and unpaid. After a period of time the city or county comes in, invokes a tax lien and — poof — the Chinese investor loses the property.
Before tax lien occurs they will rent it out. Wonder how the Chinese nationals will do the taxes.
“The increase in the minimum down payments is meant to ‘contain risks in the housing market, reduce taxpayer exposure and support long-term stability,’ a government wanker claimed
then moved some paper around his office and counted the days till retirement.
gov- always late and irrelevant
“Philly Fed Collapses To Lowest Since Feb 2013 As ‘Hope’ Crashes: New Orders Crater To 3 Year Low”
http://www.zerohedge.com/news/2015-12-17/philly-fed-collapses-lowest-feb-2013-hope-crashes
Houston, TX Real Estate and Homes for Sale- 35,197 properties
http://www.realtor.com/realestateandhomes-search/Houston_TX/radius-20?pos=29.23962,-96.058966,30.329875,-94.700893
Houston, TX Price Reduced Homes for Sale- 9,756 properties
http://www.realtor.com/realestateandhomes-search/Houston_TX/radius-20/show-price-reduced?pos=29.23962,-96.058966,30.329875,-94.700893
28% of all Houston area sellers slashed their price at least once
Miami, FL Housing Craters; Prices Plummet 9% YoY
http://www.zillow.com/market-report/12-15/268962/downtown-miami-miami-fl.xls?rt=14
“Christine Duhaime, a lawyer and expert witness on international financial transactions, said the numbers add weight to suggestions that international cash is having a trickle-down effect on the affordability in Greater Vancouver’s real estate market, where the average price of a detached home reached $1.58-million in November.”
___________________________/
A “suggestion”? Did the average price of a detached home reach $1.58 million because the median Vancouver income quadrupled?
25 MILLION excess, empty and defaulted houses CHECK
Housing demand at 20 year lows and falling CHECK
Housing prices inflated by 250% CHECK
Household formation at multi decade lows CHECK
Rampant housing fraud CHECK
A media corrupted by the housing industry CHECK
Population growth the lowest in US history CHECK
Immigration flat to slightly negative CHECK
What were you saying about housing?
The dry cleaner effect:
‘Banks are betting that pain in the oil patch is short-lived. Even after a steady drop in energy prices through the second half of the year, banks in the U.S. are being lenient with cash-strapped companies rather than set tougher lending constraints that could make survival more difficult.’
http://finance.yahoo.com/news/no-fear-banks-bet-energy-103000000.html
‘Winston-Salem, N.C.-based BB&T changed its price projections seven times so far in 2015, as opposed to the typical four times. “I was hoping the prices would go down and bounce back quickly,” said Jeff Forbis, BB&T’s head of energy lending, adding that the slump has already “gone on much longer than anticipated.”
Uh, Jeff, how did you get that job? Oil downturns always last for years.
‘Energy firms and their backers anticipated a 39% cut to borrowing capacity in the fall, according to an August survey from law firm Haynes and Boone LLP. But “only a portion of that cut came,” said Haynes and Boone partner Jeff Nichols, who is head of the firm’s energy-finance practice. “It’s definitely kicking the can down the road.”
What’s good for DC is good for the oil patch Jeff. I’m sure it will all turn out santa clausy.
What deflation does
“Seventy-nine percent of companies are having trouble filling positions for hourly workers—especially carpenters, sheet metal installers, and concrete workers—according to a September survey by the Associated General Contractors of America. The need is less pronounced for the types of salaried workers Lancaster is seeking to recruit, though 55 percent of companies in the AGC poll said they were struggling to hire project managers and supervisors.”
http://finance.yahoo.com/news/millennials-builders-desperate-hire-130002204.html
I suspect the article is bunk just like the truck driver shortage and is a way to increase hiring of illegal workers. After all you really don’t want to let the free market set wages.
The sad pandas aren’t going to like this:
‘Diane Farmer, 54, is a lifelong Democrat from the New York City area now living in Palm Beach County, Fla. She attended Catholic schools and later belonged to unions while working for a phone company and then in a court clerk’s office. She voted for Barack Obama in 2008 and 2012. But Farmer says she’s never been more excited about a candidate than she is this time. Her choice? Donald Trump.’
‘The convert to Trumpism shared her enthusiasm while stopping by glitzy Trump Tower on New York’s Fifth Avenue to pick up her fifth “Make America Great Again” cap (free with every $30 campaign contribution). “What he’s saying is what everybody’s thinking,” she said. “Too many people are getting free stuff. We should send the illegals out of the country. I want them off welfare and food stamps. Go home, and come back again when you’re ready to work.” As for the Middle East: “We should have dropped the bomb and ended the issue. We need to annihilate that, uh …,” she said, trailing off.’
‘This holiday season, Trump’s glowing fireplace of fury is firing up people like Farmer who used to look to the left—as well as a surprisingly wide swath of the Republican Party—for answers. He’s scoring his highest numbers ever among Republican primary voters—35 percent, according to the latest New York Times/CBS News poll. Enthusiasm for him only grew after he called for a ban on Muslims entering the country. To some, he seems divisive, but not to Farmer. “I thought Obama would be a unifier since he’s black and white and Muslim [sic]. But he’s an antagonizer,” she said. “We need to try something different. We can’t live like this.”
‘Yup, it’s an angry Christmas, and it’s worth thinking about why. Something has changed to create such a shift in the public’s leanings, from taking a chance on Obama’s audacity of hope to delighting in Trump’s straight-up audacity.’
‘But the most potent fuel for Trumpism is undoubtedly the sick economy. A long stretch of underperformance has seeded mistrust in the American Dream among millions of would-be breadwinners, especially people without college educations.’
‘As everyone knows by now, a winner-take-all economy is producing big gains for a thin stratum at the top but little for anyone else.’
http://www.bloomberg.com/news/articles/2015-12-17/why-this-year-s-christmas-season-is-so-angry
A life long Democrat - from New York!
‘I thought Obama would be a unifier since he’s black and white and Muslim’
Oddfellow is gonna have an aneurysm:
‘Russian President Vladimir Putin on Thursday described US Republican presidential hopeful Donald Trump as “talented” and “outstanding,” welcoming his stance on Russia. “He is a very outstanding man, unquestionably talented,” Putin told journalists after his annual press conference in Moscow.’
“It’s not up to us to judge his virtue, that is up to US voters, but he is the absolute leader of the presidential race,” Putin added.’
http://news.yahoo.com/putin-calls-trump-outstanding-talented-man-agencies-005747627.html
When I see pictures of Trump rallies, the crowds appear to skew distinctly older, as if they were oldsters high on revolution.
Then again, the demographic that votes skews distinctly older too.
There’s going to be a sweep. And I have the biggest broom in the room.
‘In late October, Canada’s The Globe and Mail ran an article on how mortgage fraud is thriving in Canada’s red hot housing market, mostly via the mortgage broking industry, raising risks for financial stability:
“In some cases borrowers are simply trying to buy a home that is out of their reach financially. In others, the borrowers could qualify if they had a bigger down payment and paid a higher interest rate, but instead alter pay stubs and bank statements in order to qualify for the cheapest possible mortgage. Still, more involve people… who forge documents in order to save a deal that is up against a tight deadline…”
“Earlier this year, Home Capital Group Inc., the country’s largest alternative mortgage lender, revealed it had cut ties with 45 mortgage brokers after an anonymous letter to the company’s board of directors sparked an investigation into forged documents, such as fake employment letters and income statements. Collectively, the brokers who were fired generated nearly $1-billion worth of mortgages for the company last year…”
“In an online presentation on fraud and identity theft from 2012, mortgage insurer Canada Guaranty notes that “one in 10 mortgage applications will have some element of fraud.” Credit bureau Equifax says it had been able to flag nearly $1-billion worth of attempted mortgage fraud among its lender clients since 2013.”
“It’s happening on such a level that the consumer is aware that this is something that can be done,” says an Ontario mortgage broker who didn’t want his name used and who once complained to federal and provincial regulators after being referred a deal that involved a family looking to buy three homes without any reportable income. “It’s happening on such a level that some bank reps, mobile mortgage reps, have said: Call a mortgage broker, they can probably find a way to make your income higher”…
http://www.macrobusiness.com.au/2015/12/canada-takes-action-against-liar-loans/
Round Rock, TX Housing Craters; Prices Dive 4% YoY
http://www.movoto.com/round-rock-tx/market-trends/
“Sell The Bonds, Sell The Stocks, Sell The House”
http://davidstockmanscontracorner.com/sell-the-bonds-sell-the-stocks-sell-the-house-dread-the-fed/
*Going forward it’s all falling prices to dramatically lower and more affordable levels accelerating the economy like you’ve never seen before.