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Flaherty throws CMHC future in doubt

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Mortgage Broker News | 30 Apr 2012, 09:00 AM Agree 0
Finance Minister Jim Flaherty is hinting – like none of his predecessors before him – that the government could and, perhaps, should get out of the mortgage insurance business.
  • Mtge Man | 01 May 2012, 03:16 AM Agree 0
    Seems appropriate seeing many lenders were using/abusing the system by insuring borderline deals thus taking available funds from worthy clients buying homes under normal guidelines. Banks used this avenue so they could sell off their mortgages.
  • Donald Wilson | 01 May 2012, 04:15 AM Agree 0
    The federal government receives hundreds of millions of dollars in profits derived from the mortgage insurance business. They are as likely to give them up as a heroin addict is likely to quit heroin.

    Whether or not the government should be in the business of providing mortgage insurance or not is really somewhat irrelevant. As long as they provide the government guarantees back both CMHC insurance and private mortgage insurance the risk to the tax payer will continue to exist.

    All that owning the insurer does is make sure that the taxpayer is rewarded for that risk.
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