Not many realize it, but Equitable Bank (TSX: EQB) has been quietly schooling every bank on the TSX and S&P 500 when it comes to 10-year total shareholder return.
And who's at the helm of this dark horse in the banking race? None other than Andrew Moor, a former mortgage brokerage head who's a passionate big bank challenger.
For years, Andrew's been waving the mortgage broker flag with more gusto than a sports fan with front-row seats. In fact, much of the bank's success is thanks to its thousands of broker originators.
Now, Andrew is not your typical CEO who sticks to the script. He's a candid shot of whiskey in an industry of tepid water glasses. We jumped at the chance to have a little sit-down with him because, let's face it, who doesn't love a straight shooter? True to form, he graciously answered every question, including some that tend to make bankers sweat like a polygraph test.
In the video interview that follows, Andrew unpacks a smorgasbord of mortgage topics, including:
- The "risk of overtightening" mortgage regulations
- What could fuel default risk in this cycle
- The "unfair" exclusion of some home buyers
- The future of reverse mortgages
(Equitable's reverse mortgage business has grown 42% y/y.)
- Why Equitable doesn't offer a reverse HELOC
- Why a bank like Equitable can't match Big 6 prime uninsured mortgage rates
- How fast the non-prime market could grow
- The fairness of how banks are expected to respond to borrowers who don't pay
- A potential regulatory change on amortizations used to qualify for a mortgage
- What his bank's stress tests suggest could happen if inflation didn't fall as expected
- The likelihood of arrears exceeding 1%
This one's worth a view.