Brokers: Rein in CMHC

Brokers: Rein in CMHC

Brokers: Rein in CMHC Many brokers and industry pundits alike believe the CMHC has strayed too far from its roots and one player believes the Crown Corporation should never have entered the securitized mortgage market.

“Securitized mortgage product, in my opinion, is commercial trade and CMHC has/had/should never have been in this market,” mortgage broker Tom Adamson wrote on “I am not slamming the securitized marketplace; there are many great institutions that got their start and still today provide excellent products to this industry.

“CMHC should not, never should have been, and does not belong in this commercial part of trade that this industry has grown to become.”

Originally established to give a helping hand to Canadians who otherwise would not be able to afford a home, CMHC has, more recently, made moves to help stimulate the economy; moves that are oft-debated among industry professionals. Many of whom believe the Crown corporation has outgrown its initial intention.

“CMHC was not established as a profit centre with a billion a year. It was created to help with home ownership. Originally if one was fortunate to have a CMHC insured loan your mortgage rate was discounted off the market rate,” one anonymous commenter wrote on “The crown corporation morphed into an insurance business with little regard paid to risk and its consequences.”

And it’s an opinion that was shared by the late Jim Flaherty.

“Regrettably, CMHC became something rather more grand, I think, than it was intended to be,” Flaherty told reporters in December. “We’ll see over time what that role should be.”

CMHC to get back to its roots
  • Angela Wong-Liao - Invis 2014-11-10 12:07:26 PM
    CMHC was founded and established after World War II to assist Canadians in home ownership, its time to go back to the basic.
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  • LanceH 2014-11-10 2:34:09 PM
    I agree Angela. My real concern if they do so, is that they do it right, and things don't go from bad to worse, as "dozens of ideas" fly around the halls of politics, ie, the talk of privatization, yet still backed by the Gov. That is a recipe for disaster!!! We have to acknowledge, that once a company - private or gov - gets "too big to fail", selling it won't change that designation, so we might as well keep it and the avg 2B / yr profits, which are better in Gov coffers than that of private individuals, and simply shed some of the excess role it's taken on.
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  • Daryl French 2014-11-12 11:59:47 AM
    Many seem to want to toss the baby out with the bath water, yes CMHC needs to be tweaked, but going back to what it was decades ago makes no sense. Is Apple what it was when it was founded? Corporations need to grow and change with the times and seek out opportunities in new markets or die.

    We have a crown corp that is actually profitable, lets celebrate this and see how to move forward within some clearly defined boundaries.

    If the securitization market creates more competition the end consumer will win. So lets take a look at how CMHC can be a part of this within tolerable risk levels???
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