ating business as usual in terms of existing commitments. We are still closing deals, and we’re still committing on new deals.” Nonetheless, there have been some unexpected hiccups. “There are a few things that we’ve identified today that need some consideration, such as closing mechanics,” Little says. “If we are using a solicitor who isn’t in their office, how are they going to accommodate signatures? We are making sure that our service providers also have good remote work environments, including electronic signatures.”
“We have to be able to absorb the shock and keep things moving” Little also points out that working with appraisers will likely become an issue, as they need to be out in the field. However, he notes that “some appraisal groups have already implemented plans to adapt to COVID restrictions,” and he is monitoring how that aspect of the origination process will play out. So how long can this situation work? “Well, that’s probably the billion-dollar question,” Little says, noting that the end of the crisis is predicated on stopping the virus’s spread and the government remaining proactive to ensure economic viability. “We’re not in an underlying credit crisis. Today, we’re in a scenario that’s much closer to 9/11. We have to be able to absorb the shock and keep things moving.”
Q&A
Ed Karthaus Executive vicepresident, sales and marketing HOME TRUST
Years in the industry 35+ Fast fact Karthaus has served as a director of CMBA Ontario and is a member of the organization’s Hall of Fame
From strength to strength Overall, how was 2019 for Home Trust? It was a very good year for Home Trust. We saw solid loan growth in our Classic alternative product, we relaunched our Accelerator prime product in Q3 to a positive response from our broker partners, and we launched a new version of our broker portal, Loft, which is fully mobile and responsive. Overall, it was an exciting and productive year, and our results are indicative of our efforts.
What milestones are you most proud of? There were many proud milestone moments for me, so I will highlight a few. First, being named Bank Lender of the Year at the Mortgage Awards of Excellence was a very proud moment for Home. That industry recognition was truly the result of a team effort across the organization. Next, the closing of our cross-border RMBS placement, backed by our near-prime, uninsured residential mortgages – this type of innovation in the market has been good for Home Trust, but also for our industry as whole. The third thing is seeing our commitment to our digital transformation paying off. Our service levels continue to improve, and our customer satisfaction survey results reflected this. Our people were also recognized throughout the year, including two of my colleagues who were named to CMP’s Women of Influence list – that was a highlight for me. Overall, the feedback we are receiving coast to coast from our broker partners has been very positive, and we are proud to work alongside them to make homeownership dreams come true.
What market factors contributed to the growth of your business during the year? In 2019, LTVs were healthy, and single-family clients were accessing capital to reinvest in their homes instead of moving. In the second half of the year, we saw that homebuyers with strong credit, good net worth and strong down payments have moved back into the marketplace.
What are you most excited for in 2020? What should brokers look forward to from Home Trust? I believe 2020 will be another exciting year. From a market perspective, strong employment and immigration numbers will continue to fuel core markets, and other factors, such as the continued growth in the business-for-self segment, are positives for us. Another interesting thing to watch is immigration growth. The Canadian population is growing faster predominantly due to immigration, which will affect housing supply in urban markets. This may have an impact on higher rents and an increase in housing prices.
www.mortgagebrokernews.ca
12-13_Alt Update-SUBBED.indd 13
13
24/03/2020 3:48:48 AM