A week ago the Globe & Mail ran it’s latest subprime “expose,” entitled “Canada’s Dirty Subprime Secret, to which the Vancouver Sun replied Friday: “There is no secret subprime mortgage problem in Canada.”

The Globe’s story was largely anecdotal and attributed a big number of defaults to subprime lenders.  It used seemingly large foreclosure statistics (e.g. “10,000 foreclosure proceedings”), in a way that would make a layman think Canada had a virtual foreclosure epidemic.

Like so many stories before it, it was a completely one-sided, and dare we say irresponsible, article that offered absolutely no context whatsoever.  For example, it gave no mention of how record job losses are contributing to Canadian foreclosures.  “Everyone knows unemployment is up, everyone knows we’re in a recession, everyone knows that real estate has dropped – by definition you’re going to get higher defaults when any of those things happen,” said Xceed Mortgage’s Ivan Wahl to CMP.

See original here: 
Canadian Subprime in the Globe…Again

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Filed under: Mortgage & Financing

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