CMHC to rein in mortgage liabilities

IMG_7990CMHC to rein in mortgage liabilities to $545B this year

“Canada’s national housing agency expects to trim the amount of insured mortgages it’s keeping on its books this year, a continuation of a multiyear trend that started in 2011.

The Canada Mortgage and Housing Corporation (CMHC) said in its annual report released Monday it expects to have a total of $545 billion worth of insurance in force by the end of 2014. That’s down from $557 billion for fiscal 2013, itself a reduction of 1.6 per cent from the $566 billion it had in 2012.

The lower figure could be an indication of many factors, including that the number of people paying off their mortgages is outpacing the amount the CMHC is backstopping in new policies. Regardless of the reason, the overall effect is that taxpayers are on the hook for less of Canada’s housing stock.

The CMHC insures a type of mortgage-backed security known as a Canada Mortgage Bond, and the agency said Monday it expects to backstop $120 billion worth of them by the end of this year. That’s a reduction of a little over two per cent from the $122.6 billion it insured in 2013 — another sign the housing agency is further extricating itself in tiny increments from its dominant perch atop Canada’s housing market.” CBC News

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