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article imageCMHC to axe two mortgage insurance product offerings

By Jeff Evans     Apr 28, 2014 in Business
Canada Mortgage and Housing Corporation (CMHC) has announced that they will no longer offer Second Home and Self-Employed Without 3rd Party Income Validation mortgage insurance products.
The announcement will be effective May 30, 2014. It comes on the heels of a mortgage insurance premium increase that will be effective on May 1st.
CMHC has stated that the changes are the first set of changes made to contribute to the stability of the real estate market in Canada as per their mandate, and that the programs being eliminated account for less than 3 percent of their mortgage insurance volume in units.
Canada has three mortgage insurance companies, with Genworth Canada and Canada Guaranty being the other two, privately owned companies. CMHC is a crown corporation.
Genworth Canada and Canada Guaranty have followed in the footsteps of CMHC, like they did when CMHC announced a mortgage insurance premium increase. No announcement has been made yet by either insurer as to whether they will follow CMHC's decision to eliminate similar offerings in their product line.
Mortgage insurance provides insurance coverage to mortgage lenders in the event of default by a property owner.
More about cmhc, genworth canada, Canada Guaranty, STATED INCOME MORTGAGES
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