It seems some money lenders are not happy with the new Mortgage rules, so they are attempting to bamboozle the system by marketing something called a Bundled Loan (or as I call it bungled mortgages ). The CBC’s explanation of this new poly-morphed debt vehicle is:
Canada’s subprime mortgage providers are increasingly teaming up with unregulated rivals to sidestep rules designed to clamp down on risky lending. … The result of these partnerships are so-called bundled loans, which pair a primary mortgage with a second loan from unregulated groups called Mortgage Investment Corporations (MICs).
This sounds suspiciously like the old 1st mortgage, 2nd mortgage, and maybe a 3rd mortgage trickery of days gone by, except the 2nd and 3rd ones are with, interesting loan folk. The CBC also points out that while this isn’t really against the law, the folks who offer the main mortgage are supposed to take into consideration other debt vehicles used by the borrowers, wonder if they look at the other parts of the Loan Bundle? Still sounds like bungled mortgages to me.
It is Friday the 13th today. Is it a bad day to invest? I don’t know call me in a year and I will tell you. Should you sell on Friday the 13th? Depends on what you are selling, and whether what you sell goes up in value after you sell it. I never get tired of giving these kind of testicle busting comments. Did you realize that Friday the 13th, always occurs after a Thursday the 12th ?
My Writings for Week Ending January 13th
Last week the year end employment numbers were published by our friends at Stats Canada, and it showed that 2016 Was the Year of the Part-time job, since that is where most of the job growth in Canada took place. It is good there are more jobs, but it is disturbing to see that many folks careers now consist of a few part-time jobs, quilted together to create enough income to live on. Let us hope they are not also looking for bungled mortgages.
A Money Thought
Well, it costs you money, because in Ottawa it is Pothole season!
— CTV Ottawa (@ctvottawa) January 13, 2017