CMHC readies for housing market risks in wake of COVID-19 downturn

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Canada Mortgage and Housing Corp. is bracing for further impacts on the housing market from the COVID-19 pandemic.

The housing market will have to reckon with significant short-term uncertainty, as well as falling housing demand from weaker household incomes in the medium term, the Crown corporation said on Friday.

"While it will take several months for the economic impacts of COVID-19 to fully materialize, some factors are starting to work their way into in our financial results -- for example, we are starting to see the impacts in our provisions for insurance claims," said Lisa Williams, CMHC's chief financial officer, in a statement on the corporation's second-quarter financial results.

While CMHC took on new government programs and funding, it also saw claims expenses jump by $256 million, or 711 per cent, due to an increase in provisions for COVID-19 related claims, including the outlook for mortgage loans currently in deferral. CHMC's next report will also show the impact of its stricter underwriting criteria, which as of July 1 tightened credit score and down payment requirements for insured mortgages.

 

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CMHC you do not have to worry, as money launderers, tax evaders, etc are there to support the market so that they can legitimize their crime

The bubble is getting bigger...

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