Bad Policies Grow for CMHCBy Vernon Clement Jones Mortgage Broker News
CMHC's bottom line is showing the effects of an uncertain economy, with Q2 profit taking a corresponding beating.
Net income for those three months ending June 30 was $335 million, off $48 million from the same period a year ago.
While CMHC is blaming much of the drop on its own impaired equity investments, it suffered an increase in claims, also contributing to a revenue fall of $100 million.
It loss on mortgage insurance claims rose to $168 million for the three months ended in June, which is up from the $144-million recorded for the year-ago period.
"Overall, Canadian housing markets are supported by economic and demographic fundamentals; however, CMHC continues to closely monitor activity," says CMHC in its quarterly report.
Still, there may be further slowdown on the horizon as the effects of a slowing real estate market come home to roost. The Crown corporation has already suffered a slowdown in portfolio insurance for lenders as it approaches the $600-billion cap for its government-backed insurance fund.
