Provinces should be consistent on syndicated mortgages says AIC

Provinces should be consistent on syndicated mortgages says AIC

Provinces should be consistent on syndicated mortgages says AIC

Recently announced changes to the regulations relating to syndicated mortgage investments will enable investors to make well-informed and prudent decisions.

That’s the view of the industry body representing Canadian appraisal professionals, the Appraisal Institute of Canada.

The association has responded to the Ontario government’s rule change, which will mean that from July 1, 2018 mortgage brokers must collect and document expanded disclosure information using a FSCO form. This will include appraisal information.

“Appraisals provide an unbiased, independent and reliable market value for a property,” said Richard Colbourne, AACI, P.App., president of the AIC. “The amended regulations now ensure that an appraisal is completed for a syndicated mortgage investment and that it will include the condition and value of the property within 60 days of the inspection.”

He added that the information will ensure that a potential investor has “a clearer understanding of the “as-is” value of the property to make a well-informed and prudent investment decision.”

Fraud concerns
The AIC says that it shares the Ontario government’s concerns over fraud related to syndicated mortgage investments and welcomes its initiative to address the issue.

It is working with FSCO, OSC and Ontario Ministry of Finance on these matters and urges other jurisdictions across Canada to implement similar measures to build a consistent framework across the country.

“AIC believes that the measures taken by FSCO and the Government of Ontario to protect investors in the case of syndicated mortgages investments is warranted and is the prudent approach to take” said Keith Lancastle, AACI (Hon.), AIC’s chief executive officer.