OSFI releases B-21 draft

OSFI releases B-21 draft

OSFI releases B-21 draft The Office of the Superintendent of Financial Institutions (OSFI) released its Guideline B-21 Residential Mortgage Insurance Underwriting Practices and Procedures Monday, which include “six fundamental principles for sound mortgage insurance underwriting.”

The industry has feared B-21 would bring with it further restrictions to those implemented by B-20.

The B-21 draft, which is based on OSFI’s internal review as well as the Financial Stability Board and the Joint Forum, will now enter a consultation period that is open until May 23.

“Once comments have been considered, a final guideline will be issued and an implementation date set,” an official release from OSFI states.

The six principles – which include implementing an underwriting plan, assessing mortgage lenders and their underwriting practices, and risk mitigation, among others -- can be found below.

Principle 1: Residential Mortgage Insurance Underwriting Plan
A (federally-regulated mortgage insurer) FRMI that is engaged in residential mortgage insurance underwriting should have a comprehensive Residential Mortgage Insurance Underwriting Plan (RMIUP). The FRMI’s insurance underwriting practices and procedures should comply with its established RMIUP.

Principle 2: Establishing Standards for the Initial Assessment and Qualification of Mortgage Lenders
A FRMI should establish sound standards for the purpose of initially assessing and qualifying mortgage lenders for mortgage insurance coverage.


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  • Paolo Di Petta | dipettamortgage.com 2014-04-14 4:38:55 PM
    So basically, people need to start doing their jobs.

    Sounds a lot like common sense. The real question is why this wasn't happening any sooner.
    Post a reply
  • Daniel McKay 2014-04-14 5:47:26 PM
    So when will these tougher guidelines actually be applied to the big 5 banks? They are still getting deals done in complete ignorance of harsher guidelines and OSFI/Department of Finance and the insurers continue to turn a blind eye to it.
    Post a reply
  • Walid Hammami 2014-04-14 6:55:41 PM
    No real relevant info here, it sounds like they want to make common sense legal now. I thought it was!!!!!

    They are not talking about downpmt or debt ratios. As long as client have good credit with ne delinquencies they should be ok and it's better that way.
    Post a reply