Ottawa Initiates Consultation Program For Mortgage Lenders

The Department of Finance in Canada has started a consultation program, which will help determine and consider if lender ought to partake of the liability for defaulted mortgaged with backing from CMHC.

In light of the publicizing of the consultation, the department mentioned that; “the Canadian housing finance system is sound, with strong foundations that promote financial stability, including robust regulation, prudential supervision of regulated financial institutions, and high underwriting standards.”

Nonetheless in order to have the system be stable and steadily maintained, the federal government is thinking whether a “modest portion” of loan losses that default, should be managed by the mortgage lenders themselves. The consultation by Ottawa, will continue until the end of February next year, more information will be on the Finance Canada website for the public to view.