Ottawa moved to bring the Canada Mortgage and Housing Corporation under the purview of the country’s top financial regulator Thursday.
Finance Minister Jim Flaherty outlined the proposed changes to Canada’s national housing agency in a wide-ranging bill tabled in parliament on Thursday.
The CMHC insures the vast majority of Canadian mortgages, as well as guaranteeing mortgage-backed securities issued by Canadian banks. It is backed by taxpayer dollars and under current rules, is governed by the Department of Human Resources and Skills Development Canada.
But the changes outlined Thursday will give the Office of the Superintendent of Financial Institutions — the top financial regulator in Canada — and the Department of Finance ultimate authority over CMHC’s actions.
“It is a recognition that CMHC has become a significant financial institution,” Flaherty said. “CMHC was created to assist in social housing
