Canada’s housing agency is seeking more data on home loans from shadow lenders, amid concern rising levels of debt aren’t being adequately tracked and may increase the risk of financial instability.
Canada Mortgage & Housing Corp. (CMHC) will seek data from participants in the securitization program on their uninsured conventional mortgage lending, said Evan Siddall, chief executive officer at the Ottawa-based agency. CMHC needs to “know what risk we are exposed to,” and so will use the reported information to decide if changes are needed to their rules, he said.
“We are concerned about increasing levels of riskier mortgage activity by non-federally-regulated financial institutions,” Siddall said in a Montreal speech earlier this week, as quoted by Bloomberg. “We have a responsibility to isolate sound, solvent institutions from the contagion that can erupt when a lender fails.”