11 October 2012
The other side of the problem is that for banks it means the collateral they get against the mortgage may not worth as much as it’s reported.
This summer OSFI advised lenders to pay more attention to this issue and focus on in-person appraisals. Nevertheless, at that moment there was no information on how serious the margins can be and how high the level of concern over Emili data is.
One thing is certain – we will see more and more physical appraisals required by lenders and mortgage insurers, since banks want to see someone accountable for the property valuation.