Today, the Office of the Superintendent of Financial Institutions released a set of proposed guidelines that will apply to Canada’s major mortgage insurers.
You can find the guidance on OSFI’s website, where the group states, “[We’re] issuing for comment Draft Guideline B-21, [called] Residential Mortgage Insurance Underwriting Practices and Procedures. The draft guideline sets out OSFI’s expectations with respect to prudent residential mortgage insurance underwriting and related activities.
“Once finalized, the guideline will be applicable to all federally-regulated mortgage insurers to which the Insurance Companies Act applies, and to those that provide mortgage insurance for residential mortgage loans in Canada and/or reinsurance for such insured loans.”
Industry participants can provide comment until May 23, 2014. All letters should be sent via email to OSFI directly or through industry associations (use the following address: B21@osfi-bsif.gc.ca).