AMPLIFYING CMBA’S VOICE

Introducing JP Boutros, newly appointed government relations advisor

BY CHRIS FREIMOND

JPBoutros, Canadian Mortgage Brokers Association’s newly appointed government relations advisor, doesn’t hesitate when asked what value he will bring to CMBA members.

“I look forward to being a conduit between the messages the government and policy-makers want to bring and what mortgage brokers would like to inform the government about on behalf of their clients and themselves. CMBA president Sadiq Boodoo and the board’s goal is to elevate that conversation and ensure that mortgage brokers’ voices are better understood and heard in the wider media sphere and by the government. We want our input to become indispensable to them as a vital stakeholder.”

With 15 years in government relations (GR) under his belt, including four years leading GR for another industry association, Boutros is well placed to ensure CMBA’s voice is heard by the federal and provincial governments.

Boutros, who has a genuine passion for real estate and personal finance, is a strong believer in the value of home ownership and aims to help CMBA convince policy-makers to avoid making buying and owning a home unnecessarily difficult for Canadians.

One of his first priorities is getting decision-makers to understand the socio-economic impacts of Guideline B-20.

In January this year, the Office of the Superintendent of Financial Institutions (OSFI) launched a public consultation regarding changes to Guideline B-20 Residential Mortgage Underwriting Practices and Procedures that would further tighten mortgage underwriting rules and possibly related rules that apply to federally regulated lenders.

Specifically, OSFI is seeking feedback on three measures: (1) possible restrictions on mortgage size (loan-to-income (LTI)) and debt load (debt-to-income (DTI)); (2) debt service coverage restrictions, in relation to a borrower’s gross income and total debt; and (3) interest rate affordability stress tests, to gauge a borrower’s ability to afford higher debt payments in the event of financial shocks.

Boutros personally believes some of the measures exceed the mandate of the regulators whose primary role is to oversee federally regulated financial institutions and big banks rather than individual borrowers, mainly because of effects that lie outside the regulator’s area of expertise.

“The issue is that a lot of the B-20 messaging talks about the type of homeowner they want, the type of borrower they want on the books at the big banks. I don’t think that’s their mandate and hope they don’t want that as a mandate,” he says. “Their stated mandate is to protect the big banks, deposit holders and shareholders; it’s not to regulate individual Canadians, yet their influence over housing policy is clearly evident.”

Boutros says it is essential for CMBA to be included in conversations with governments and that regulators do not rely on data that quickly becomes outdated.

“Regulators need first-hand, real-time, front-line information that comes from people, especially mortgage brokers. That’s the strong messaging CMBA will take to government; we need to put it out there,” he adds.

In advance of a federal election, Boutros says the board and he will consult members across its four provincial associations to get a better understanding of their government relations and regulatory concerns.

Regulators need first-hand, real-time, frontline information that comes from people, especially mortgage brokers. That’s the strong messaging CMBA will take to government; we need to put it out there.

“We don’t want to be too presumptuous. While B-20 is important, I think there are other local issues that we may be missing and that need our attention,” he says.

For example, says Boutros, on a broader scale, CMBA will also be looking at challenges such as housing supply and will be working with CMBA-BC, CMBA-Ontario, CMBAAtlantic, and CMBA-Quebec on how to accelerate growth through home ownership and construction. The association will also work with philosophically aligned organizations to ensure there are cohesive and coherent messages, with B-20 and fraud prevention high on the list.

“Our overall strategy is definitely to work with government and become an informative and reliable stakeholder so they aren’t listening disproportionately to big entities like the Canadian Bankers Association, with established ways of doing things, because there’s nothing normal anymore during a time of constant change,” he says.