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Reader note: This Week in RateLand will run Tuesday so it can reference Canada's latest inflation report.
OSFI's proposed "B-20" mortgage policy tightening will "push borrowers to commit mortgage fraud," expects a broker-lender CEO we spoke with off the record recently.
"We have seen a rise in fraudulent applications from borrowers frustrated with their continued inability to purchase a home," he said. "If OSFI wants to introduce more stress test type policies, they must simultaneously give federally-regulated financial institutions more abilities to fight mortgage fraud."
According to Equifax data cited by Cecely Roy at Mortgage Professionals Canada (MPC), mortgage fraud is already almost 30% higher than pre-pandemic. The only thing rising faster than that is the blood pressure of chief risk officers.
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