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Mortgage Broker News | 02 Nov 2009, 10:00 AM Agree 0
Karen Kinsley, president and CEO of the Canada Mortgage and Housing Corporation (CMHC), recently voiced her "disappointment" at the Financial Post for suggesting that the mortgage insurer was "reckless"
  • Max Cafissi | 04 Nov 2009, 07:10 AM Agree 0
    The Financial Post article is typical of the Media, reporting on items that they have not researched thoroughly enough. Comparing CMHC to Freddie Mac and Fannie Mae is ludicrous, since those are Privately owned Corporations whereas CMHC is a Crown Corporation whose sole mandate is to Insure and Provide "affordable housing to Canadians". I am appalled that a respected publication such as the FP would allow that article to go to print without someone checking the facts.
  • Jan N | 04 Nov 2009, 07:35 AM Agree 0
    this is typical "truth be damned,sell papers at any cost" journalism from Diane Francis. CMHC is a highly regulated Crown agency. Lenders must also be prudent when submitting applications to CMHC. Too many defaulting loans by a CMHC Approved Lender means that Lender has a serious review by CMHC
  • Brian Matthey | 04 Nov 2009, 08:48 AM Agree 0
    Thanks for the quote.While few people have every referred to me as a 'Brain",they do often refer to me as Brian-lol
  • Editor | 04 Nov 2009, 08:56 AM Agree 0
    Apologies for the mistake (or was it a compliment?) Regardless, it's been corrected.
    Thanks for using the forum,
    Jesse
  • Concerned Toronto Resident | 05 Nov 2009, 03:06 PM Agree 0
    Speaking of not doing research: quoting Karen Kinsley without researching her statements is also irresponsible.

    The CMHC's insurance limit was only raised a few weeks ago (from $450B to $600B), so any comment that it "is entitled to insure up to $600 billion in mortgages, it only insures $480 billion now" is actually stating that it is $30B *over* what its limit was supposed to be until it was recently raised (because they grew far beyond projections).

    Also - where is the context in Karen Kinsley's statistics? CMHC's growth in the last 8 years has been astronomical -- over 20x from 2001 to 2009. Saying that this is a well-planned financial program is only true if "well-planned" government programs are supposed to grow at the rate of a 90's-era dot-com company.

    Any insurance company that plans to grow its riskiest assets by 33% in ONE YEAR is waaaaaaaay too aggressive.
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