Results for Hashtag #chmc

  • #CHMC
    I came across this interesting piece on CHMC.

    http://www.theglobeandmail.com/report-on-business/economy/housing/ottawas-800-billion-housing-problem/article6732755/?page=all

    I found David Dodge’s comments the most interesting.

    To Mr. Dodge, these were irresponsible moves that would encourage some people to borrow too much or jump into the…[Read more]

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  • #chmc – The Liberals need to get this right. The fact of the matter is that the CMHC allows people to over- leverage. Full Stop. That is its mandate. It allows for mortgages that would normally not be written. It is shocking to say this, but if you have CMHC mortgage, you probably should not be living where you are living right now. …[Read more]

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    • Given the experiences of the US and British market, we should be VERY wary of private insurance to replace CMHC. I agree that CMHC is the equivalent of Fanny Mae and Freddy Mac, but not the equivalent of sub-prime mortgage brokers.

      I personally think that CMHC is valuable to keep in Government hands. CMHC mortgages are much more expensive for…[Read more]

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      • Hugh: I am more impressed with your points than Steven’s but he does have two good points and a loser in the “privatizing” suggestion. If not privatized, CMHC is a policy lever. Perhaps we can get more bang for our buck if we review and update its mandate and assure its modus operandi is consistent. It can certainly not become a sub prime broker.…[Read more]

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      • Let me know it I am wrong, but wasn’t CMHC the way government used taxpayers as guarantors in risky mortgages with the thought to help first buyers get a little help? The problems I see with it is that banks and lenders starting using it to accept high risk loans, knowing they had nothing to loose, moving all the risk to taxpayers.

        Then as was…[Read more]

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    • The current mortgage delinquency rate in Canada is about .3%, which is well within the comfort zone for lenders and insurers.

      If you would have a young family try to save $60,000+ to buy a house without mortgage insurance, you probably would be happier with the Libertarian Party.

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    • CHMC was never a problem until the Conservatives changed the rules.
      They raised amortizations to 40 years with no money down. Raised the amount that CHMC would lend out up to a million. They stoked the real estate market to make themselves seem like good economic managers. Now for the past few years they back tracked and started warning about…[Read more]

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      • Very well said Darlene. Great posts.

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      • Very well presented fact-based argument, Darlene. I hope u continue to join the conversations on these and other topics. We need ur wise perspective to improve our understanding of the context of these issues. Thanks again.

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        • These have been good comments. I suggest that this type of insurance remain public, but that all parameters ot the regulations change. Allowing only 5% down is a major contributor to the bubble. I know people will complain that it helps keep housing affordable but that is a credit card solution to a real problem – it is just kicking the can down…[Read more]

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          • Steve, I know most people favor having higher down payments, but if you look at the stats in the last 15 years they show that most people at the median income have had very little upward momentum in their earnings, causing savings rates to drop and debt to disposable incomes increase.

            For me I don’t have a problem with 5% down. It was available…[Read more]

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        • Thanks David for your kind words.

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    • John. the Liberals started a pilot project in the 90’s for 5% down. In 2003 they brought in 5% down permanently. The part about not having a limit on purchases was also done in 2003, but at that time house prices were not astronomical as they are today and there were stricter lending criteria that had to be met.

      The Conservatives deregulated the…[Read more]

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  • #chmc – Privatization may not be the answer, but we need a cogent argument to refute it. We cannot rely upon old stand by points that the CMHC makes housing more affordable…..at what expense? In a perfect world, there would be no need for CMHC, and people would be able to live within their means, and borrow within their means, and, most…[Read more]

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    • When a house could be bought for $20,000, many people were able to save the 25% as it was then. Housing prices have risen proportionally far faster than incomes, and most people can’t save the kind of money needed for a conventional mortgage.

      CMCH is a cash cow for the government/taxpayers, as if you had paid attention to the delinquency…[Read more]

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      • That’s true regarding the delinquency statistics and the current balance sheet, however, CMHC contributes to the overheated housing market and, in part, to house prices rising faster than incomes. In Europe, many people, including those with solid well paying jobs, are comfortable living in multifamily residential or renting. This supports…[Read more]

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        • I invite you to visit the Canadian Bankers Association where there are all sorts of statistics dating back to 1990. The Readers Digest version is that the average equity – many of which were initially insured mortgages is 68% of the value. Delinquency is well within the comfort zone; even credit cards which are the ‘canary in the mine’ of…[Read more]

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          • We have enough problems without digging up new ones. Credit may be a growing problem but I don’t think that CMHC contributes to it.

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            • Well – lets assume privatization is off the table from a Liberal policy standpoint, we still need to increase the amount of money we need as a down payment, even where insurance is required.

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        • Steve: You have opened so many doors a crack, it’s difficult to respond. I’ll respond to obvious points: Privatisation – Alberta privatised liquor sales, cutting provincial revenue share to a fraction, reducing choice and increasing cost to consumers and doubling abuse; which put the taxpayers on the hook for enforcement and rehab (i.e. Alberta…[Read more]

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        • Well said Steve. Thanks for sharing your intelligent perspective on this issue. I agree with most if not all the points you’ve made on this issue.

          As far as MHF researching and writing on this topic, I wouldn’t doubt she would be open to the suggestion. Although her conclusions might not be as good as yours. I find that on most issues she seems…[Read more]

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  • Bill Moses posted an update 2 years ago

    #CHMC privatization? Supposedly to reduce risk to Canadian taxpayers? You would just be transferring the risk somewhere else, have a lot less control over the risk and the Canadian taxpayer would probably have to bail that transferee entity out at some point. If it ain’t broke, don’t fix it! Now there’s an understandable policy the LPC should…[Read more]

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    • Bill is right, privatisation would cost us more. It would be the same thing like with the banks; they screwed up, and the taxpayers bailed them up.
      BTW, we should get rid of central banks, as President Jefferson did at one point in USA. USA debt has evaporated, instantly. What are we waiting for? I gave that advice to eventual candidates for…[Read more]

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  • Hugh Ferguson posted an update 2 years ago

    #chmc, #economy Has anyone seen this about Flaherty wanting to privatize CHMC?

    http://www.theglobeandmail.com/report-on-business/economy/housing/flaherty-eyes-privatization-of-cmhc/article4627593/

    I trust that the LPC will appropriately speak out against this. CHMC or AIG? Who would you rather have managing mortgages in this country?

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