CMHC CEO’s letter ruffles feathers as bankers say stricter mortgage rules could dash first-time homebuyers' hopes

“There is no question that there will be pain in the system but the question is how much and whether incremental demand picks up some of the slack,” said Gord Nixon, former chief executive of Royal Bank of Canada, the country’s biggest lender.

Industry sources say many on Bay Street were surprised to see the CMHC head take aim at private market competitors Genworth Financial Mortgage Insurance Company Canada and Canada Guaranty Mortgage Insurance Co.Evan Siddall, CMHC CEO However, part of his rationale — high household debt in Canada — was also questioned by bankers because it is far from a new issue and has been flagged as a risk for years by domestic and international organizations including the Organisation for Economic Co-operation and Development . Despite these warnings, the residential mortgage sector has remained relatively free of damagingly high defaults through the 2008 financial crisis and the oil price collapse in 2015, the veteran banker noted.

“Excessive borrowing creates future economic drag and I offered that as reasoning behind our changes,” he wrote. “I acknowledged that our market share would decline, and I merely asked lenders not to allow our competitors to gain share beyond what we are now avoiding.”Article content continued

He called the banksters on their greed !

Well maybe prices should drop a bit? But we all know the politicians and bankers don't want to see this gas bag deflate...

It could also prevent them from being upside down on their mortgage when housing prices crash

first time buyers are already screwed with out of control prices

Yes because recognizing the fact that the price of houses has become out of touch with the incomes of ppl is just too much for ppl to deal with. So, sure, let’s just let ppl get insane mortgages.

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