PMI Canada calls for review of CMHC

PMI Mortgage Insurance Company Canada (PMI Canada) says it would like to see the government examine how competition could be increased in the Canadian mortgage insurance market and consider how Canada Mortgage and Housing Corp.’s mortgage insurance business could be restructured “to best ensure an active and competitive mortgage insurance market”.

The company says it commends the Competition Policy Panel for its recent recommendations for instituting regulatory reforms, increased transparency, and reduction of overlap and duplication in the regulatory arena.

“PMI Canada has advocated for a consistent and transparent system of regulatory review,” says Janet Martin, CEO, PMI Canada, in a news release. “We are encouraged by the panel’s recommendations that a more broad system of regulatory reform be undertaken with the goal of maintaining and increasing competition within the marketplace.”

In January, PMI Canada submitted its recommendations to the panel that called for separating CMHC’s various businesses, including mortgage insurance, into separate entities, privatizing CMHC’s mortgage insurance business, and recommending a public mandate review of CMHC.

“Implementation of the proposed recommendations would help to increase long overdue mortgage insurance competition, resulting in more choice for Canadians looking to achieve the dream of home ownership,” says Martin.

"Establishing a level playing field in Canada will benefit not only potential home buyers but lenders as well, the company says. “Fostering increased mortgage insurance competition will allow PMI Canada to bring innovative risk solutions to lenders that will assist them with their business strategies, particularly when it comes to market expansion and risk mitigation,” says the company. “Most financial Crown corporations are required to have public mandate reviews every 10 years; however, no independent mandate review of CMHC has been conducted for more than 20 years.”

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