CMHC could be pulled out of mortgage insurance business, Flaherty says

Finance Minister Jim Flaherty would consider takingCanada Mortgage Housing Corp. out of the mortgage default insurance business he told the National Post’s editorial board. ‘I don’t think it’s essential that a government financial institutionprovide mortgage insurance in Canada’ “Over time, I don’t think it’s essential that a government financial institution provide mortgage insurance in Canada. I think what’s […]

CMHC Insurance Limits: A Wake-up Call for Lenders

Many have now seen thisNational Post article. The gist of it: CMHC is approaching its $600 billion government-imposed limit on issuing mortgage default insurance. That’s happening largely because of lenders’ enormous appetite for something called portfolio insurance (a.k.a., “bulk insurance”). No one fully grasps the repercussions yet, but our sense is that the news is not […]