Prohibited from selling mortgages since the 1871 Bank Act, the banks in the early 1950s found themselves being strongly encouraged to enter the market by a federal government in the midst of a severe housing shortage. When the National Housing Act and the Bank Act were amended in 1953 to allow mortgage lending by banks, Royal Bank took the mortgage market by storm to ensure a winning market share. Earle McLaughlin, then assistant general manager, set up formal courses to train staff in all aspects of mortgage lending. The effort paid off - by 1958, Royal Bank had 38 per cent of all mortgages held by banks. Royal Bank continues to dominate the mortgage market, and, growing from Earle McLaughlin's "mortgage school", Royal Bank remains to this day both a pioneer and an industry leader in staff training.
