What Governments Should Do in Mortgage Markets
20 Pages Posted: 2 Mar 2011
Date Written: January 31, 2011
The federal government’s role in mortgage markets is pervasive and should be scaled back, while encouraging more competition in the mortgage insurance business, according to this study. The author notes that the mortgage insurance book of Canada Mortgage and Housing Corporation, CMHC, which is a Crown agency, now backstops mortgage lending equivalent to more than 30 percent of gross domestic product. While the net exposure is less than this, the arrangement subjects Canadian taxpayers to large, ill-defined risks. The author suggests several steps to manage these risks better.
Keywords: Financial Services, Canada, Canada Mortgage and Housing Corporation (CMHC), Mortgage Insurance
JEL Classification: G21, G28
Suggested Citation: Suggested Citation