Stress-Test-Free Uninsured Switches Start Tomorrow, and Maybe More!

OSFI says everything's a go for tomorrow's stress test policy change. The banking regulator confirms that "November 21 is the date that banks can begin accepting straight switches without performing the mortgage stress test."

It's a move that should incrementally boost origination volumes industrywide as more borrowers are able to switch lenders. However, due to system issues, internal policy and other factors, not all lenders will be on board on day one.

The most aggressive competitors will naturally see the greatest uptick in switch volumes. But overall, this won't move the needle much since most retention departments have a knack for keeping renewers loyal. Moreover, only a small minority of would-be switchers were blocked by the stress test to begin with. For mortgage originators, however, every new deal helps.

What's more intriguing is a potential shift to #insurable# policy, and we've got an update on that.