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Stock impact report

Financial regulator calls time on risky condo appraisals as housing slide deepens [Wealth Professional (Canada)]

Royal Bank Of Canada (RY) 
Last royal bank of canada earnings: 2/21 06:00 am Check Earnings Report
US:NYSE Investor Relations: rbc.com/investorrelations/index.html
Condo lending has become a weak link in Canada's housing correction, just as the country posts some of the steepest home price and affordability declines among advanced economies. According to a Reuters Exclusive , the Office of the Superintendent of Financial Institutions (OSFI) warned bank executives in an October meeting that widespread use of “blanket appraisals” on condominium mortgages could breach a federal mortgage rule. Under the Bank Act, banks cannot issue uninsured mortgages that exceed 80 percent of a property's market value at the time of closing. Blanket appraisals let lenders rely on the property's value when the buyer signs the purchase agreement, not when the unit closes, and are often used to approve multiple units at once. In a falling market, that gap can push loan-to-value ratios above the legal limit. Reuters said it obtained the October meeting minutes through an access to information request. In that session, OSFI told banks that failure to follow Show less Read more
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