After nearly two years, Canada’s financial watchdog has finally released a set of guidelines for the country’s three mortgage insurers, reports the Globe and Mail.
The guidelines, from the Office of the Superintendent of Financial Institutions (OFSI), remain a proposal and will now hear comments and suggestions from
mortgage insurance companies and others until May 23 before releasing a final set of rules.
Industry players have been watching to see whether any of the proposed guidelines might impact the housing market by making it more difficult for consumers to obtain mortgage insurance.
The new guidelines spell out the practices that OSFI wants to see from the country’s three mortgage insurers, Canada Mortgage and Housing Corp., Genworth MI Canada and Canada Guaranty.
Many of the new guidelines essentially tell mortgage insurers that they are responsible for ensuring that the banks are being careful when they underwrite mortgages.
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