It'sAnAsset-Driven
WorldVille
A Joanne Lee-Young piece in Postmedia suggests that might be the case. Here is her lede:
The prospective buyers of a $2.46 million Richmond home put down a $120,000 deposit. When they were turned down at three major national banks for financing to complete the deal, an employee at RBC Royal Bank of Canada and a real estate agent at Richmond-based Metro Edge Realty advised them to exaggerate and/or fake assets in China in order to qualify for a mortgage here, according to a notice of civil claim filed in B.C. Supreme Court. None of the allegations in the claim have been proven in court...
The real estate company concerned has denied each and every allegation.
The bank concerned has declined comment.
It will be most interesting to find out what comes out in court.
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Sunday, September 18, 2016
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5 comments:
pay to play banking?
NINJA loans?
Anon-Above--
If this is real and it is happening on any sort of scale, just imagine what will happen when the bubble bursts and folks who have been bamboozled into faking their assets go under water on $2.3 million (or even $1.3 million dollar, which is likely at the low end for folks putting 5% down in my Eastside Vancouver neighboorhood now) mortgages.
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This seems to be more of a case of foreign buyers "hiding" their assets than faking non-existent assets.
If they couldn't make mortgage payments...we'd be seeing lots of foreclosures and we're not...
Interest rates might go up a half percent over the next year...but we'll never see the 18% my parents paid in the early 80s.
mizkitty--
Don't think the two scenarios are necessarily mutually exclusive.
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https://mobile.twitter.com/ziobrando/status/289635060758507521?lang=en
Bs is 10x
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