“A real estate agent has told me that, thanks to unscrupulous mortgage brokers, falsifying documents in mortgage applications has become rampant in Vancouver.”

If this has indeed been happening, it’d be yet another mechanism by which higher prices begat higher prices, and another reason that, once this lumbering beast of a market turns, it could fall harder than any of us expect. -vreaa

From an article by Steffan Ileman, examiner.com 8 May 2010 5:31 pm

“A real estate agent that wishes to remain anonymous has told me that, thanks to unscrupulous mortgage brokers, falsifying documents in mortgage applications has become rampant in Vancouver. The agent says this is how some local and foreign buyers that want to get in on Vancouver’s real estate boom extend their buying power. The same assets, for instance, could be recycled and used by a number of different parties to support  mortgage applications, and it’s especially easy to forge documentation from foreign sources. With HST and rising interest rates it will be more expensive than ever to own or maintain property in British Columbia, and the question is if low income home owners can trigger a bust in BC’s mortgage bubble.”

One response to ““A real estate agent has told me that, thanks to unscrupulous mortgage brokers, falsifying documents in mortgage applications has become rampant in Vancouver.”

  1. In 2006, a friend talked to a broker at a downtown bank about a loan. Without any hesitation, the broker offered him to “increase” his income by about 50% so that he would qualify. “Nobody will ask”, he said. So, I suspect that this type of thing has been rampant for years.

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