The nation’s largest provider of mortgage default insurance keeps shrinking and that seems to be okay with the people now running Canada Mortgage and Housing Corp., reports The Financial Post.
The Canada Mortgage and Housing Corp.’s decision to cut back its mortgage default insurance coverage was likely directed by the department of finance as part of an ongoing plan to lighten the risk load at the Crown corporation, sources told the Financial Post.
CMHC, which still controls the majority of the insurance market in Canada, released its annual report for 2013 and its forecast for 2014 which show a business contracting slowly.
It also shows the Ottawa-based agency is doing more and more to tighten its books and create a lower risk profile, now that it is being run by former investment bankers rather than bureaucrats.
The agency said this year that its in-force insurance portfolio will drop to $545-billion after hitting $557-billion in 2013. The year before it was $566-billion.
