Should CMHC lower its premium?

A recent report in Financial Post raises the question – should CMHC lower its premium? We see the question as a popular move but it is hard to justify the demand. The bottom line is that if someone doesn’t like to pay the premium then just don’t

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A look into mortgage prepayment penalty – as a MBS investor

Paying penalty to break a mortgage term is not a pleasant experience. You have probably experienced the pinch once or twice during your homeownership. It is interesting to see how the penalties decide pool types on mortgage backed securities. The NHA mortgage backed securities guide speaks a

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OSFI explains Balance Sheet Exposure on Capital Adequacy Requirements – Good for banks

Canadian banks – at present do not have a fixed capital ratio requirement. What they have is a mixed bag of guidelines imposed by OSFI. Since the last balance sheet meltdown, various BASEL committees were set up and they came up with ideas to regulate financial institutions

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Long Weekend Surprise from CMHC – Limiting the MBS ceiling at $350m for each bank

Somehow all the federal or federally regulated organizations like to let the rabbit loose from their hats before long weekends. CMHC followed the long venerated tradition this time too. On August 1st it sent a note to the lenders stating that it will be rationing its backstop

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