Last week's federal budget contained no specific rule changes for the mortgage industry but it did signal the government's desire to tighten the oversight of CMHC.
The Crown Corporation currently resides within HRDC (Human Resources and Skills Development Canada) but may end up under the direct supervision of OSFI (Office of the Superintendent of Financial Insitutions). This would allow the Finance Department to more closely control the mandate and activities of CMHC which currently accounts for about 75% of the mortgage default insurance market in Canada. Due to greater than expected demand for low ratio portfolio insurance (for which premiums are paid by lenders rather than borrowers), CMHC is close to its mandated maximum of $600 billion in insurance in force. There will surely be more news on this soon.
Finance Minister Jim Flaherty projects that the budget deficit will be eliminated by 2015, aided by $5.2 billion in cuts this year. Total spending for the fiscal year which began yesterday will be $276 billion with revenues of $255 billion, resulting in a deficit of $21 billion.
The Week Ahead
This week is a four day work week as Friday is Good Friday - a significant day on the Christian calendar - and a Statutory Holiday across the country. See our Just for Fun section below for some fun facts the month of April.
Major League Baseball swings into full regular season action this week with the Toronto Blue Jays kicking off their schedule in Cleveland on Thursday. As always, hope springs eternal.
Focus on Collateral Charges
Some lenders have been registering "collateral charges" rather than traditional "mortgage charges". As our Feature Article explains, there are benefits to consumers but there are also hidden pitfalls.
Have a great week!
Kevin & Faye Kitzman
Remax Real Estate Centre
Direct : 519-577-0603