CMHC's loss is Sagen's gain, as private-sector mortgage insurer sees market share grow

CMHC CEO’s letter ruffles feathers as bankers say stricter mortgage rules could dash first-time homebuyers’ hopes

The changes meant up to 30 per cent of future applicants might not meet CMHC’s guidelines, a report from credit-rating agency DBRS Morningstar estimated. Furthermore, CMHC’s private-sector competitors, Sagen and Canada Guaranty Mortgage Insurance Co. , did not follow suit.to lenders in August warning that the Crown corporation’s market share had taken a hit, and that it was approaching the minimum level at which it would be able to protect the mortgage market in a crisis situation.

The coronavirus pandemic also stoked concerns about a rise in mortgage defaults, prompting lenders to allow borrowers to defer their loan payments — with the blessing of mortgage insurers. The pandemic has stoked concerns about a rise in mortgage defaults, prompting lenders to allow borrowers to defer their loan payments — with the blessing of mortgage insurers.Sagen also said the proportion of new insurance written in the third quarter that had gross or total debt-service ratios above 35 per cent and 42 per cent, respectively — which are CMHC’s limits — was around 41 per cent.

Because CMHC's mandate is quasi market but more so a fattened Govt agency with research and social programs. Time to split CMHC into a Govt dept and a true mortgage insurer.

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Canadian housing market faces 'moderate' degree of vulnerability: CMHCCanada's housing sector is facing a 'moderate' degree of vulnerability to market instability for the second straight quarter and showing signs of overheating for the first time this year, says the country's housing agency. high degree What does this mean exactly? Houses are too expensive and rents are too both need to come down
출처: CTVNews - 🏆 1. / 99 더 많은 것을 읽으십시오 »

Metro Vancouver real estate market at 'moderate' degree of vulnerability: CMHCIt singled out excess inventory in new condos in the rental market, which has been hit hard by a drop in immigration and the number of international students and young renters working in the service industry who may have lost their jobs due to the pandemic. The sky is falling? They've been saying this for more than 30 years.
출처: VancouverSun - 🏆 49. / 61 더 많은 것을 읽으십시오 »