Hacker News new | past | comments | ask | show | jobs | submit login

I get what you are saying, but so far things are going very well.

By 2010 CMHC had an annual financial surplus of more than $2 billion.[6] CMHC is the largest Crown Corporation in terms of assets with some $26 billion in holdings as of 2008-2009.

If you think this insurance can cause Canadian banks to be more risky in their lending - I don't think that is currently the case.




So $26B in holdings to insure $1.372T in outstanding mortgages, that seem pretty low but since the taxpayers will cover the rest, I guess it's fine to continue handing out subprime mortgages.


They don't insure the value of the mortgage, they insure the shortfall between what the lender recoup in foreclosure vs. the outstanding loan balance.


I havent looked in detail lately - but I believe they issue bonds and the bond holders would be covering the impact of a market crash.

You would prefer if there was not such an insurance system required for home owners putting less than 20% down?


You would prefer if there was not such an insurance system required for home owners putting less than 20% down?

I know I would. It would be like the 90's again where banks had to only loan out to people who they thought wouldn't default.


If you think this insurance can cause Canadian banks to be more risky in their lending - I don't think that is currently the case.

This is 100% exactly how the US crash happened through Fannie Mae and Freddie Mac.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: