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PT6A
Jan 5, 2006

Public school teachers are callous dictators who won't lift a finger to stop children from peeing in my plane

peter banana posted:

stadiums are designed and built by organizations in countries where hundreds of workers don't die. Workers dying and being enslaved is not typically a byproduct of stadium building. I find it hard to blame the architect as well.

But it is typically a byproduct of choosing to work on a project in an autocratic Middle East shithole where it's well-known that workers are abused. The architect is not directly responsible for the deaths, by any means, but that doesn't mean criticism is inappropriate.

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namaste friends
Sep 18, 2004

by Smythe
http://business.financialpost.com/2014/07/03/even-economists-say-they-continue-to-be-surprised-by-canadas-housing-market/

quote:

Record low interest rates have have forced Toronto-Dominion Bank to boost its forecast for the Canadian housing sector.

Economist Diana Petramala said in an economic report that TD’s forecast in January was banking on an increase in interest rates that has not materialized.

“Interest rates, unexpectedly, reversed course beginning in March. Five-year mortgage rates currently sit at their lowest record on level,” Ms. Petramala wrote, noting that existing home sales in May were well above their 10-year average.

More strength may be bubbling under the surface
The demand for housing pushed May average resale price growth to 7.1% on a year over year basis which is well above income growth. The home price-to-income ratio is at a new high.

Now the economist is suggesting the housing market may have some more strength in 2014 although the general view is the market will cool over the medium term.

“More strength may be bubbling under the surface,” said Ms. Petramala, noting reports of bidding wars may point to very strong demand for single family homes.

On the condo side, lower interest rates combined with prices has made affordability of condos “more favourable” than ever. “First-time homebuyers who were pushed out of the market due to the past tightening in mortgage insurance regulations may find it easier to jump back in,” she wrote.

Single family home prices will also feel the pinch after rising by 8% this year, according to the forecast. In 2015, single family family home prices are expected to rise by 2%.

Ms. Petramala emphasized that housing will continue to be a regional story, even as it turns into a buyer’s market in 2015.

Victoria, Toronto and Victoria are “flagged” as markets more vulnerable to a cool down because of recent strength while Calgary and Edmonton are poised for continued expansion based on employment and populations.


EvilJoven
Mar 18, 2005

NOBODY,IN THE HISTORY OF EVER, HAS ASKED OR CARED WHAT CANADA THINKS. YOU ARE NOT A COUNTRY. YOUR MONEY HAS THE QUEEN OF ENGLAND ON IT. IF YOU DIG AROUND IN YOUR BACKYARD, NATIVE SKELETONS WOULD EXPLODE OUT OF YOUR LAWN LIKE THE END OF POLTERGEIST. CANADA IS SO POLITE, EH?
Fun Shoe
It's like they're making sure that this bubble gets so big that when it pops it'll be sure to leave no survivors.

Baronjutter
Dec 31, 2007

"Tiny Trains"

Victoria, the market so vulnerable they listed it twice.

Isentropy
Dec 12, 2010

Just gonna leave this bad boy here:



I wonder if Halifax gets used as a case study in planning classes in "what not to do".

peter banana
Sep 2, 2008

Feminism is a socialist, anti-family, political movement that encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians.

EvilJoven posted:

It's like they're making sure that this bubble gets so big that when it pops it'll be sure to leave no survivors.

Does anyone else find it really hard to convince people that we are in fact in a bubble precisely because of this? My husband and I knew we were in a bubble 2-3 years ago (thanks to Garth Turner, don't hate) and lots of our friends told us that housing values would only go up and many of them have bought.

Now I just feel like if the bubble that existed 2-3 years ago had popped then, we might have made it out okay. But I find it really hard to have intelligent conversations with young people now, trying to convince them not to buy, when it spiraled so out of control.

ductonius
Apr 9, 2007
I heard there's a cream for that...

Isentropy posted:

Just gonna leave this bad boy here:



I wonder if Halifax gets used as a case study in planning classes in "what not to do".

Other than the clash of styles (which is a matter of taste) what exactly is wrong with this?

Brannock
Feb 9, 2006

by exmarx
Fallen Rib

ductonius posted:

Other than the clash of styles (which is a matter of taste) what exactly is wrong with this?

Just a matter of taste? Seriously?

ductonius
Apr 9, 2007
I heard there's a cream for that...

Brannock posted:

Just a matter of taste? Seriously?

Yes, to a huge degree art and architecture are a matter of taste. Shocking, I know.

So, what exactly is wrong with that building other than the fact that some people will find it hideous and others will find it not so?

Rick Rickshaw
Feb 21, 2007

I am not disappointed I lost the PGA Championship. Nope, I am not.
Here in Halifax we're desperate to break ground on anything that will slip by the Heritage society - a group that stops any and all growth in the name of preserving our "Heritage", which is a notion I'm not totally against, but we need to set limits.

I'll take that building if it means some economic development. Ideally, get some Cape Bretoners off unemployment for a couple years.

Rick Rickshaw fucked around with this message at 15:29 on Jul 6, 2014

namaste friends
Sep 18, 2004

by Smythe

peter banana posted:

Does anyone else find it really hard to convince people that we are in fact in a bubble precisely because of this? My husband and I knew we were in a bubble 2-3 years ago (thanks to Garth Turner, don't hate) and lots of our friends told us that housing values would only go up and many of them have bought.

Now I just feel like if the bubble that existed 2-3 years ago had popped then, we might have made it out okay. But I find it really hard to have intelligent conversations with young people now, trying to convince them not to buy, when it spiraled so out of control.

Yes, it is possible. It takes months to talk sense into people. Keep in mind that Canada's had a 13 year real estate bull run and that won't help you convince anyone that this bubble is the new normal. It breaks my heart that one of my best friends recently converted from a bear to a bull. I think his new wife's family, who are builders, are the root of his conversion, in addition to this bull market run.

Don't underestimate the power of the urge to 'nest'. Ease of access to mortgages helped inflate Canada's housing market bubble but the 'nesting' impulse has always existed and is an incredibly strong impulse that will strip the most intelligent and rational person of all their loving common sense when it comes to managing financial risk. People *want to believe* that there isn't anything wrong with the bedrock (that is their house) that will be the genesis of all their hopes and dreams to having a happy family life.

When it all comes crashing down, take solace in the fact that you'll probably be cleaning up because you're financially liquid. There's no denying that everyone gets hurt by a recession, but relative to all the loving idiots who are several hundred thousand dollars into a deep dark liability hole, you will be orders of magnitude better off financially in the long run.

Brannock
Feb 9, 2006

by exmarx
Fallen Rib

ductonius posted:

Yes, to a huge degree art and architecture are a matter of taste. Shocking, I know.

So, what exactly is wrong with that building other than the fact that some people will find it hideous and others will find it not so?

Did you think Tour Montparnasse was "a matter of taste" too? Aesthetics isn't nearly as subjective as you want to believe. And, no, the importance and impact of having a cohesive and attractive city center goes well beyond simple preference. People don't want to spend time or money or social investment on a severely goblinized place.

Rime
Nov 2, 2011

by Games Forum

ductonius posted:

Yes, to a huge degree art and architecture are a matter of taste. Shocking, I know.

So, what exactly is wrong with that building other than the fact that some people will find it hideous and others will find it not so?

Tasteless: Having or displaying bad taste; devoid of good taste.

ductonius
Apr 9, 2007
I heard there's a cream for that...

Brannock posted:

Did you think Tour Montparnasse was "a matter of taste" too? Aesthetics isn't nearly as subjective as you want to believe. And, no, the importance and impact of having a cohesive and attractive city center goes well beyond simple preference. People don't want to spend time or money or social investment on a severely goblinized place.

And the alternative to this building is, what? Would you prefer a glass monolith? How about another Frank Gehry pile of garbage? Or a concrete monstrosity! Or a victorian monstrosity! Wait! We could put a ten story filing cabinet in it's place! You pick the style you want. I've got a dictionary full of architectural pejoratives to choose from. Whatever the alternative is, I guarantee it's poo poo.

And "cohesive"? So the problem now is "it's different"? Give me a loving break. There is absolutely nothing that says buildings have to fit in with their surroundings. In fact the opposite is far more true; if you look at iconic city skylines - the profiles of city centers - they are dominated by that one loving building that doesn't fit in. This includes Paris, by the way, and "that one loving building" is the Eiffel Tower.

Rime posted:

Tasteless: Having or displaying bad taste; devoid of good taste.

This is just another way of saying "I don't like it." So, I guess you tried.

Rime
Nov 2, 2011

by Games Forum

ductonius posted:

And "cohesive"? So the problem now is "it's different"? Give me a loving break. There is absolutely nothing that says buildings have to fit in with their surroundings. In fact the opposite is far more true; if you look at iconic city skylines - the profiles of city centers - they are dominated by that one loving building that doesn't fit in. This includes Paris, by the way, and "that one loving building" is the Eiffel Tower.

:getout:

namaste friends
Sep 18, 2004

by Smythe
If it's not in wallpaper, dwell or monocle it's tasteless and should be bulldozed to the ground

PT6A
Jan 5, 2006

Public school teachers are callous dictators who won't lift a finger to stop children from peeing in my plane
It looks like an interesting, if unconventional, building. There's far, far worse out there (usually, a combination of hideous, impractical and horribly bland/average).

Isentropy
Dec 12, 2010

Rick Rickshaw posted:

Here in Halifax we're desperate to break ground on anything that will slip by the Heritage society - a group that stops any and all growth in the name of preserving our "Heritage", which is a notion I'm not totally against, but we need to set limits.

I can agree that the Heritage Trust is generally pretty obstructionist, but there also seems to be a notion (which to be fair, seems to be the Heritage Trust's fault as well) that Halifax is the only city with historic buildings and that we can't do anything because of it. The building looks ugly but the main reason I hate it is that there seems to be no real attempt to integrate the building into the surrounding area at all. The developers here seem to think that all they need to do is build what they saw in Montreal or Toronto or whatever and suddenly we'll be a World Class City.

It's the same thinking that has developers building $1600 dollar condos out in the burbs with swimming pools and movie theatres and wondering how comes they can't sell them.

namaste friends
Sep 18, 2004

by Smythe
How is that Halifax building any different than this:

Professor Shark
May 22, 2012

Isentropy posted:

Just gonna leave this bad boy here:



I wonder if Halifax gets used as a case study in planning classes in "what not to do".

This picture is development in Halifax in a nutshell: (literally) building ugly poo poo around older, nicer buildings in the name of Hey American Tourists We're A City Too! Bring Money, Why Not?!.

I would be totally fine with newer buildings if they emulated the older Historical buildings.

At least the cloaking field buildings are a good start I guess.

Baronjutter
Dec 31, 2007

"Tiny Trains"

Living in Victoria we have a ridiculous heritage lobby and the result has been mostly horribly ugly buildings due to the demand of "cohesiveness" or "respecting heritage". So instead of a good contemporary building you get these ugly contemporary buildings that have some check-list heritage-respecting details. In many cases it's like the architect is trying to mock the entire process and council's demands by putting the ugliest and least appropriate fake-heritage details on a building. Actually making buildings that match older styles is really expensive because the building codes and methods are so different, and unless you spend a fortune to do a perfect job they end up looking like fake disney land poo poo.

I don't really care that much what style a building is, so long as it is well built and has good massing for the area. People spend way too much time agonizing over the height of a building and if it has enough brick or a pitched roof or a bay window to "respect" the local heritage and never enough time worrying about it's street interaction. If you look at any world class city they're a mix of centuries of styles, but consistent massing and consistently good street interaction. If you walk around Prague for instance, regarded as an absolute historical architectural treasure, you're still looking at centuries of different styles. What unites them all is they're all generally the same shape and size and follow the same patterns. It doesn't matter if it's a 1700's building or a 2010 building, they'll present an attractive street-wall of buildings all with similar shapes and sizes.

Of course in a very old city with like a 200 year tradition of "all our downtown buildings are about 6 stories" it's very easy for any style of building to fit-in so long as it keeps to that massing. But in north america we often lack, or have demolished those areas. It's rare in north america to see this sort of european cohesiveness in terms of massing, our cities are much more used to differences in shapes/heights of buildings. Back in the day you were limited by the lack of elevators, height was a huge pain in the rear end and you'd only go up after you've filled out every other direction. Most of north-america boomed well after the elevator and the sky-scraper so there wasn't this force to keep buildings mostly the same height and you see much more vertical variety.

I enjoy the 5-6 story massing but super high density of cities like Prague, but I also enjoy places like New York, or Hong Kong, or even Vancouver. To me anyways, as long as the density is high to support transit and walking, and the streets are pedestrian friendly, and the ground floor of the building is well connected to the street, then I don't care if it's a 5 story Art Nouveau masterpiece or a 20 story ultra-modern glass thing.

That halifax example seems a bit silly. Is land really so scarce and precious in Halifax that they're forced to do that? If that was an example from Hong Kong or something I'd probably say "cool".

ductonius
Apr 9, 2007
I heard there's a cream for that...

Professor Shark posted:

This picture is development in Halifax in a nutshell: (literally) building ugly poo poo around older, nicer buildings

That happens everywhere. It is very, very common. Vancouver has several skyscrapers now where they kept the front of the old, historical building as a facade for the newer, taller building. It's a compromise between stalling development in the name of preserving the physical relics of history and the wholesale destruction of those physical relics in the name of development. You can't have complete preservation and healthy development. If you aren't comfortable picking one extreme or another you have to find a place in the middle you're content with. The other way to solve the problem is to just build new buildings elsewhere and eventually the 'city center' moves, old buildings end up away from where everyone is and then they succumb to neglect and disrepair. Then they have to be torn down due to decades of accumulated rat poo poo and structural deficiency. Whoops.

Also, you know what happens when you build tall buildings in a classical style? You get art deco, or new_york_skyline.jpg or "a sea of granite cocks loving the sky" depending on your perspective.

Baronjutter posted:

Is land really so scarce and precious in Halifax that they're forced to do that? If that was an example from Hong Kong or something I'd probably say "cool".

It probably went something like this: Old building is in the ideal place for the new building. Old building is historical, cannot be touched, cannot be moved, cannot be modified. Solution: New building does the limbo over the old building from an adjacent lot to accommodate. This is exactly what happened with the Citygroup skyscraper in New York. There was a church on one corner of the lot that would simply not get out of the way. They now have a pretty neat skyscraper on stilts that was in danger of falling over for a while but it's ok now.

Rime
Nov 2, 2011

by Games Forum
It's almost like the relentless throbbing cock of "progress" should take an ice bath from time to time, instead of brutally raping what little built heritage this country has. :jerkbag:

Lexicon
Jul 29, 2003

I had a beer with Stephen Harper once and now I like him.
The mere concept of "heritage" in BC is hilarious. Most of the drat place is well post-WWI.

Lexicon
Jul 29, 2003

I had a beer with Stephen Harper once and now I like him.

Rime posted:

It's almost like the relentless throbbing cock of "progress" should take an ice bath from time to time, instead of brutally raping what little built heritage this country has. :jerkbag:

I don't believe people actually care about heritage for the most part. When they do, it's a vehicle for nimbyism.

Rime
Nov 2, 2011

by Games Forum

Lexicon posted:

The mere concept of "heritage" in BC is hilarious. Most of the drat place is well post-WWI.

There was actually a vast swathe of Victorian, Edwardian, and other 1850 to pre-1910 architectural styles present in BC. Sadly almost all of it has either been demolished for condos or gutted and turned into a façade for condos as of 2014.

Rick Rickshaw
Feb 21, 2007

I am not disappointed I lost the PGA Championship. Nope, I am not.

ductonius posted:

It probably went something like this: Old building is in the ideal place for the new building. Old building is historical, cannot be touched, cannot be moved, cannot be modified. Solution: New building does the limbo over the old building from an adjacent lot to accommodate.

I am fairly sure that's the case. Some might question whether getting the ideal location is worth doing that, but this city (Halifax) is desperately trying to build up the downtown core to help reduce the sprawl.

ductonius
Apr 9, 2007
I heard there's a cream for that...

Rime posted:

It's almost like the relentless throbbing cock of "progress" should take an ice bath from time to time, instead of brutally raping what little built heritage this country has. :jerkbag:

I'm sorry your world is changing and you don't like it. I'm just going to quote the part of the post right above yours that tells you why trying to stop development is a worse idea than using part of older buildings as facades:

ductonius posted:

The other way to [avoid touching old buildings] is to just build new buildings elsewhere and eventually the 'city center' moves, old buildings end up away from where everyone is and then they succumb to neglect and disrepair. Then they have to be torn down due to decades of accumulated rat poo poo and structural deficiency. Whoops.

But whatever. Bitch and moan all you want without addressing the social and political forces that shape cities.

namaste friends
Sep 18, 2004

by Smythe

namaste friends
Sep 18, 2004

by Smythe
http://www.mondaq.com/canada/x/325626/securitization+structured+finance/CrossBorder+Financing+Opportunities+IPOs+and+Alternatives

quote:


In Torys' Capital Markets 2012 Mid-Year Report, our article "CMHC Insurance and Covered Bonds—What Will Happen When the Training Wheels Come Off?"1 was written in response to actions taken by the federal government to significantly reduce its direct exposure to the Canadian residential mortgage market. During the financial crisis, Canadian banks and other mortgage lenders relied heavily on securitization programs sponsored by Canada Mortgage and Housing Corporation (CMHC) to provide liquidity during challenging times. In the two years since that article was published, the training wheels have not yet been removed, although the government has tested a number of tools it can use to remove them if and when it decides to do that.




quote:


Figure 1. shows the reliance of Canadian mortgage lenders on the NHA MBS program since the start of the financial crisis. CMHC has announced that in 2014 it would scale back, guaranteeing only C$120 billion of NHA MBS (of which C$40 billion would be used to back Canada Mortgage Bond issuance).3

CMHC provides transactional insurance for mortgages in which the loan-to-value (LTV) ratio is greater than 80%. It also permits its approved lenders to bulk insure their low-ratio (LTV less than 80%) mortgages using portfolio insurance. During the financial crisis, CMHC-written portfolio insurance increased dramatically as mortgage lenders depended on it to give low-ratio mortgages access to CMHC's securitization programs. Only in 2012 did the federal government require CMHC to drastically scale back the amount of portfolio insurance it wrote. Figure 2. shows the changes in portfolio insurance written by CMHC from 2006-2013.4





quote:

According to its 2013 Annual Report, CMHC expects to further reduce its annual limit of portfolio insurance from C$11 billion to C$9 billion in 2014. Between 2011 and 2012, the federal government took a number of steps pointing to its intent to reduce NHA MBS issuance to pre-crisis levels. These steps included:

maintaining the statutory limit on the aggregate amount of insurance that CMHC could have outstanding at C$600 billion (a limit set in March 2009) as CMHC approached that limit in 2011;
2011: reducing the maximum amortization period for insured mortgages from 35 years to 30 years and stopping the practice of insuring home equity lines of credit;
2012: reducing the maximum amortization period from 30 to 25 years, imposing caps on debt service coverage ratios needed to qualify for an insured mortgage and eliminating insurance on homes worth more than C$1 million; and
2012: prohibiting federally regulated financial institutions (FRFIs) from using insured mortgages as collateral for covered bonds and substantially reducing the amount of portfolio insurance that CMHC could write.
But as Figure 1. shows, these steps had little effect on the issuance of NHA MBS, with a significant amount of liquidity removed only this year.

We believe that the federal government would like to reduce taxpayer exposure to the Canadian mortgage market and see private investors assume more of this risk. While there was a small market for uninsured residential-mortgage backed securities (RMBS) or asset-backed-commercial paper (ABCP) backed by uninsured mortgages prior to the financial crisis, it was too small to have a meaningful impact on the overall funding needs of the Canadian mortgage market. That small market disappeared in 2008, and only recently have bank-sponsored ABCP conduits renewed their acceptance of uninsured mortgages as collateral.

In addition to issuing NHA MBS, the largest Canadian banks have also issued covered bonds (essentially full recourse bonds secured by pools of mortgages), chiefly to foreign investors. Prior to 2012, the vast majority of the assets backing these covered bonds consisted of insured mortgages, but as of June 2012, only conventional mortgages could be used to back covered bonds. While covered bonds have the potential to provide funding for a significant amount of conventional mortgages, the Office of the Superintendent of Financial Institutions (OSFI) limits the amount of covered bonds that any FRFI can issue to 4% of the FRFI's assets5 because of a general reluctance of OSFI to allow FRFIs to issue secured debt that would rank ahead of depositors.

Investors may be willing to invest in RMBS backed by high-quality conventional mortgages, but in today's environment, these mortgages generally do not yield enough to stimulate private investment.

Covered bonds are only available to large issuers because (i) they are primarily credit obligations of the issuer, so pricing is affected by the ratings of the issuer as much as, if not more than, the quality of the collateral, and (ii) they are expensive to implement in terms of fees that must be paid to CMHC in its capacity as Registrar of covered bonds in Canada, and legal and accounting fees. If OSFI could be persuaded to increase the limit on issuance of covered bonds to limits permitted in other countries (such as Australia, which permits up to 8% of assets), this could materially lessen the reliance of covered bond issuers on government-backed insurance. However, banks have been lobbying for an increase to this limit for many years and so far OSFI has not been persuaded.

Creating an Uninsured Canadian RMBS Market

We believe that in order to permit the federal government to further reduce its exposure to the Canadian mortgage market, it would like to see a private RMBS market develop before it drastically reduces the ability of the Canadian mortgage market to rely on its NHA MBS guarantee. Increasing the limit on covered bonds would obviate the need for such a market, but in the absence of an increase in this limit, the withdrawal of so much liquidity in the mortgage market could have a material adverse impact on the Canadian housing market. We believe that a robust uninsured RMBS market in Canada can only evolve once several developments have occurred. The balance of this article discusses these needed developments.

Risk and Quality of Assets

Many investors around the world suffered losses on investments in subprime RMBS. To re-engage in an RMBS market, we believe investors would need assurances on the quality of the underlying mortgages. In June 2012, OSFI released its final version of Guideline B-20, now currently implemented by all FRFIs. The thrust of Guideline B-20 is to establish prudent residential mortgage underwriting practices to manage risks in this market. If investors could be satisfied that the mortgages backing their private RMBS were compliant with Guideline B-20, their appetite for investment may grow.

Higher Mortgage Rates

Investors may be willing to invest in RMBS backed by high-quality conventional mortgages, but in today's environment, these mortgages generally do not yield enough to stimulate private investment. The challenge will be for the government to entice mortgage rates to rise (for example, by significantly increasing insurance premiums for insured mortgages or further restricting the availability of mortgage insurance) while at the same time not causing an alarming decrease in housing prices. We do not expect the government to take any exceptional measures in this regard before the next federal election.

Liquidity

Investors in RMBS want to know that they will always be able to determine a mark-to market value, and that there will always be a bid for their RMBS before committing to the effort of analyzing uninsured RMBS as an investment. Much-needed liquidity for private RMBS could be provided if the Bank of Canada would agree to accept highly rated RMBS backed by Guideline-B-20-compliant mortgages as collateral for overdraft loans to Canadian banks.6 The Bank of Canada may have very good reasons for not expanding the list of acceptable collateral for overdraft loans at this time. However, if the Bank of Canada can see its way to provide the liquidity that the uninsured RMBS market will require, there may be more willingness to invest in these securities.

Structural Factors

Residential mortgages are amortizing assets; consequently, RMBS are typically structured as monthly pay pass-through certificates. The Canadian market has never been able to absorb large amounts of monthly pay pass-through ABS or MBS that are not government guaranteed. Because mortgage interest is not subject to Canadian withholding tax it might be possible to issue monthly pay pass-through MBS to foreign investors, but this may require currency hedging with additional costs. The demand by Canadian institutional investors for semi-annual pay bullet bonds is what led CMHC to establish Canada Housing Trust (CHT) and its Canada Mortgage Bonds (CMB) Program. The CMB issued by CHT are backed by monthly pay pass-through NHA MBS and are effectively packaged with swaps to support notes with bullet maturities that pay interest semi-annually like more traditional bonds. Given the resulting increased demand, the cost of funding using CMB is significantly less than the cost of funding on the underlying NHA MBS if such NHA MBS were to be issued in the market.

There are two potential structures to create semi-annual pay securities with bullet "maturity" dates for residential mortgages. These are (i) using a variable funding certificate (VFC) to absorb monthly payments that can then be drawn on to pay other classes of certificates on their expected maturity dates, and (ii) creating a revolving pool of mortgages that can be used to support notes having bullet "maturity dates".7

VFCs were used in a few transactions prior to the financial crisis but were issued on an uncommitted basis; that is, in the event that the holder of the VFC elected not to allow itself to be drawn on to fund the repayment of another class of certificates backed by the same mortgage pool, the other classes of certificates would turn into monthly pay pass-through certificates. Investors have made it clear that they would not be willing to treat any certificate with a bullet maturity date as a true bullet maturity unless the VFC certificate constituted a committed facility. It would be very difficult for banks, or entities consolidated with banks, such as ABCP conduits, to provide committed VFC facilities because of the capital treatment they would carry. So far, no highly rated entity that is not subject to capital requirements (such as pension funds or government entities) has indicated any willingness to provide committed VFC facilities.

Toronto-Dominion Bank sponsors a program through Genesis Trust II that issues semi-annual pay bullet notes backed by a revolving pool of home equity lines of credit. It would be possible to create a revolving pool of amortizing conventional mortgages, but it is not clear whether investors would accept the notes as having true bullet maturities if they could commence early amortization in the event that the seller were unable to continue to sell new mortgages into the structure.

Conclusion

Although there are strong signs that the federal government would like to accelerate the removal of its support for and exposure to the Canadian mortgage market, there are still several important obstacles to overcome before private investors will be willing to take on this exposure in a meaningful way. Unless the government is willing to risk destabilizing the Canadian housing market, we are likely to continue to see government support of the Canadian residential mortgage market at levels far in excess of pre-2008 levels for several more years.

Baronjutter
Dec 31, 2007

"Tiny Trains"

"Although there are strong signs that the federal government would like to accelerate the removal of its support for and exposure to the Canadian mortgage market, there are still several important obstacles to overcome before private investors will be willing to take on this exposure in a meaningful way. Unless the government is willing to risk destabilizing the Canadian housing market, we are likely to continue to see government support of the Canadian residential mortgage market at levels far in excess of pre-2008 levels for several more years."

Nice, so the whole bubble is too big to fall.

namaste friends
Sep 18, 2004

by Smythe

Baronjutter posted:

"Although there are strong signs that the federal government would like to accelerate the removal of its support for and exposure to the Canadian mortgage market, there are still several important obstacles to overcome before private investors will be willing to take on this exposure in a meaningful way. Unless the government is willing to risk destabilizing the Canadian housing market, we are likely to continue to see government support of the Canadian residential mortgage market at levels far in excess of pre-2008 levels for several more years."

Nice, so the whole bubble is too big to fall.

also, this:

quote:

Higher Mortgage Rates

Investors may be willing to invest in RMBS backed by high-quality conventional mortgages, but in today's environment, these mortgages generally do not yield enough to stimulate private investment. The challenge will be for the government to entice mortgage rates to rise (for example, by significantly increasing insurance premiums for insured mortgages or further restricting the availability of mortgage insurance) while at the same time not causing an alarming decrease in housing prices. We do not expect the government to take any exceptional measures in this regard before the next federal election.

I guess everything is hunky dory then. No one wants to originate mortgage backed securities because the yield is too low there for our market is stable. The only way to stimulate foreign investment is to destabilize the housing market to attract buyers of risky assets???????????????????????????//

gently caress this loving country

namaste friends
Sep 18, 2004

by Smythe
http://www.vancouversun.com/business/Barbara+Yaffe+Vancouver+residents+fight+bring+order+construction+wild+west/10008803/story.html

poor rich white baby boomers :cry:

apatheticman
May 13, 2003

Wedge Regret

I don't disagree though.

There is absolutely no consumer protection for buyers or any protections for construction going up adjacent to a property. At least in Calgary you hear stories of someone next to an infill just having their peace and quiet and ability to use their own property ruined for whatever amount of time it takes to build whatever goes up.

Another issue I keep seeing pop up is builders listing their new properties on MLS and rejecting any standard builder contract so there is literally nothing the consumer can do to compel the builder to finish the property to the agreed upon level of completion. That should be manditory and new builds shouldnt be able to do an end run around a standard contract and I am surprised established builders haven't thrown their money in to lobby council to "level the playing field".

namaste friends
Sep 18, 2004

by Smythe

quote:

There is absolutely no consumer protection for buyers or any protections for construction going up adjacent to a property. At least in Calgary you hear stories of someone next to an infill just having their peace and quiet and ability to use their own property ruined for whatever amount of time it takes to build whatever goes up.

Sorry don't give a gently caress. Caveat emptor shitheads.


quote:

Another issue I keep seeing pop up is builders listing their new properties on MLS and rejecting any standard builder contract so there is literally nothing the consumer can do to compel the builder to finish the property to the agreed upon level of completion. That should be manditory and new builds shouldnt be able to do an end run around a standard contract and I am surprised established builders haven't thrown their money in to lobby council to "level the playing field".

Oh come on like there is a gun pointed at your head to buy one of these granite palaces of home ownership pride.

FrozenVent
May 1, 2009

The Boeing 737-200QC is the undisputed workhorse of the skies.

Whiteycar posted:

Another issue I keep seeing pop up is builders listing their new properties on MLS and rejecting any standard builder contract so there is literally nothing the consumer can do to compel the builder to finish the property to the agreed upon level of completion. That should be manditory and new builds shouldnt be able to do an end run around a standard contract and I am surprised established builders haven't thrown their money in to lobby council to "level the playing field".

Most lobbying is done via industry associations, because of the competition act it can be fairly touchy to lobby for a "level playing field" within an industry.

(In large part because it's pretty likely that there are people in the industry whose business model is based on doing it each way, and getting both sides to agree to do anything becomes difficult)

HookShot
Dec 26, 2005
My dad's girlfriend lives in her parent's old house in North Van, where she grew up. The house was built in the 50s and is on a good sized (if totally slanted) block of land.

She's constantly getting letters from real estate agents asking her to sell it so a developer can tear down the house and put something new up, and she's constantly saying no, she's going to live in the house until she dies.

Her neighbors, who are in their 80s, about five years ago sold their similar house because it was too big and got a condo instead. The developer who tore it down then built this enormous monstrosity on the land that ended up being so big it broke the "square footage can't be more than 80% of the land size" rule and a bunch of other ones as well, but the developer doesn't care one bit. He's been fighting North Van municipality for years, and all he does when the inspectors come by is promise he'll change things, which he never does.

But now there's his giant three story high wall that's like two feet away from her fence.



Also her neighbors behind her keep trying to convince her to cut down the trees in her front yard because "think of how good our city views would be, both of ours!" and she's just like "no gently caress you I'm not cutting down 100+ year old trees because of your property values"

Kafka Esq.
Jan 1, 2005

"If you ever even think about calling me anything but 'The Crab' I will go so fucking crab on your ass you won't even see what crab'd your crab" -The Crab(TM)
Good for her.

You should remind her to be congenial every time she speaks to people, though. I don't know what the Vancouver version is like, but the OMB in Ontario can be sanction-happy in personal disputes, especially if she wants to apply for relief in the future.

Baronjutter
Dec 31, 2007

"Tiny Trains"

I think it was somewhere in seattle, but some rich poo poo head kept asking a neighbour below him (on a hill) to cut down trees to improve his view. The neighbour didn't want to and the trees were technically on city land. The dude demanded the city cut them down because his PROPERTY VALUES could go up with better views, they of course didn't. Then "someone" poisoned the trees and they had to be cut down. In their place the city erected 3 tree-sized public-art silhouettes the exact same shape as the trees were.

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namaste friends
Sep 18, 2004

by Smythe

Baronjutter posted:

I think it was somewhere in seattle, but some rich poo poo head kept asking a neighbour below him (on a hill) to cut down trees to improve his view. The neighbour didn't want to and the trees were technically on city land. The dude demanded the city cut them down because his PROPERTY VALUES could go up with better views, they of course didn't. Then "someone" poisoned the trees and they had to be cut down. In their place the city erected 3 tree-sized public-art silhouettes the exact same shape as the trees were.

This happened in Vancouver, right on Beach Ave.

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