In a surprising recommendation, the International Monetary Fund has suggested that Ottawa should do away with mortgage insurance offered by the CMHC (Canadian Mortgage and Housing Corporation).
The IMF concedes that the current system has its advantages for stability. But it says it also exposes the government, or taxpayers, to financial system risks and might distort the market as a whole in favour of mortgages over more productive uses of capital.
Huh, would any of you taxpayers miss insuring high risk mortgages? By which we mean would you miss insuring MORE higher-risk mortgages, since there’s no way you can drop responsibility for the ones we already insure.
Read the full article here.