OSFI is calling for an increased effort on the part of banks and other mortgage providers to verify borrowers’ income levels, especially when foreign money is involved. The federal regulator also highlighted the need for greater scrutiny of loans to borrowers with high debt levels or low credit scores and said lenders must enhance steps to ensure their customers will be able to make mortgage payments if interest rates rise. Finally, OSFI said lenders and mortgage insurers need to do a better job of challenging the appraised values of housing when approving loans.
“We want them to stay ahead of the problem,” OSFI head Jeremy Rudin said in an interview, declining to add which lenders he is most worried about.
In its letter, OSFI described the problem: “With Canadian household debt levels at all-time highs, persistently low interest rates and rapid house price increases in some areas, the prudential risks and vulnerabilities for financial institutions have increased.
"This transaction is unique in that we are purchasing from a motivated vendor who is taking $10,000,000 of the purchase price in StorageVault stock at $0.80 cents. It is a premium asset in a top 5 city in Canada, which is partially opened and in lease-up" said Steven Scott, the CEO of StorageVault. "Since StorageVault is in the business of acquiring mature cash flowing assets, Access Self Storage Inc. will step in to mitigate the development and lease up risk. To remove the development risk, Access will provide the construction financing needed to complete the project and will oversee the construction. To remove the lease up risk, Access will enter into a 4 year triple net head lease with StorageVault."
Purchase Price and Payment
The purchase price for the Acquisition is $22,000,000 and is payable as follows: (i) $10,000,000 by the issuance of 12,500,000 common shares of StorageVault
Does anyone know what the success rate/turnover rate/and conditions of working as a mortgage loan originator for acceptance capital in Washington are?
No need to ask the same question more than once.