Anecdotally, our members are informing us that they are now seeing an increased level of activity in appraisals for second mortgages that seems to coincide with the introduction of the change to some of these requirements. It's for that reason we believe that all organizations that are involved in providing mortgage financing, whether it be first, second, or third, should comply with the same level of rigour in terms of the assessment of the borrower's capacity to pay and the valuation of the collateral.
The concern is that there are people in the second mortgage space that apply very stringent underwriting criteria. That is not the same degree of risk as it would be with someone who would not necessarily apply that degree of rigour. We think that levelling the playing field across the mortgage market is the most sensible approach and is ultimately the best tool to preserve the stability of the Canadian market.