Brokering change
B.C.’s mortgage brokers are preparing for changes in the regulations governing the work they do, with self-regulation being among the proposed changes welcomed by the head of the association representing the province’s 1,450 mortgage brokers.
“We think that the industry can and does wish to set high standards for itself, and the industry knows its own, how it works. Government may not always be the expert,” said Samantha Gale, CEO of the Mortgage Brokers Association of BC and former manager, mortgage broker regulation, with the province’s Financial Institution’s Commission.
The proposal is one of several in a 15-page discussion paper that also suggests changes to the definition of “mortgage broker” in light of changes in the financial services sector since the Mortgage Brokers Act was introduced in 1972.
The paper also raises issues with the registration, licensing and insurance for brokers, as well as the interface between the Mortgage Brokers Act and other legislation. Disclosure and discipline are two areas Gale sees as in particular need of overhaul; she also sees the need for the designation of an individual as a manager or managing broker in an office, with set responsibilities.
“Right now, there’s no key person that’s statutorily created to perform this kind of function,” she said. “Basically, the response has been to create policy to fill some of the gaps. We’re looking at creating a better structure for the mortgage broker industry.”
B.C.’s Ministry of Finance is receiving comments on the discussion paper through the end of February 2013.
Down in California
During a visit to San Diego in July 2004, I witnessed opposition to Vancouver developers’ use of migrant labour on condo projects in the city that included protestors holding banners declaring “Immigrant Labor Abuse by Canadians.” But last week, with California construction employment yet to rebound to pre-2008 levels, the BC Construction Association (BCCA) led a delegation of companies to a job fair in Indio, California, that attracted 500 skilled trades keen to work in northern B.C.
“We had a number of employers with us, and all the employers were pleased with the people that they saw,” BCCA vice-president Abigail Fulton reported an hour after the fair closed. “There were some offers being made, and some under consideration.”
JJM Construction was named in a press release regarding the event, but, given the political issues associated with hiring foreign workers, Fulton declined to name other participants.
The fair is aimed at filling vacancies for which workers aren’t available in B.C. and is part of the Foreign Skilled Workers BC program the association launched earlier this year.
The event in California follows on events in Ireland and Scotland in September that resulted in about 300 accepted job offers from a total of 2,000 applications. Chosen applicants can take up to two months to arrive in Canada.
Power down
Colliers International’s fall retail report points out that Vancouver, with just 3.32 square feet of power centre retail space per capita, is under-served when it comes to power centres. Those who keep track note that it’s almost a third of the 9.7 square feet in Edmonton, which is Canada’s power centre centre.
The short supply isn’t necessarily a bad thing, however.
The recent Emerging Trends in Real Estate report from the Urban Land Institute and PricewaterhouseCoopers notes that power centres are among the least desirable assets for investors in the year ahead. Cap rates for the properties stand to decompress by eight basis points in 2013, to 6.21% – not the highest cap rate by any means, but certainly the greatest decompression projected for 2013.
Still, with very little new supply, 75% of investors expect to hang on to the properties – and given the relatively short supply in Vancouver, with good reason. •
