The Vancouver Sun reports the role of the Canada Mortgage and Housing Corporation (CMHC) has been reviewed by the CD Howe Institute, Fraser Institute and the Macdonald-Laurier Institute. Each provided recommendations, including privatization. Canadian taxpayers are on the hook for $500 billion to lenders. Some fear that Canadian government owned CMHC could be headed for a housing bubble burst similar to their southern neighbor. The 2008 U.S. mortgage/housing collapse resulted in 20% foreclosures and some $6 trillion in losses. Experts suggest Canada should create a mortgage insurance program subsidiary for the CMHC. They also suggest bringing the CMHC under the Office of the Superintendent of Financial Institutions (OSFI) control for greater transparency.
(graphic: CMHC logo)