Canada Regulator Urges Banks to Be ‘Diligent’ on Mortgages
Canada’s Office of the Superintendent of Financial Institutions said that banks should maintain sound, prudent mortgage underwriting practices.
Canada’s main banking regulator issued a letter today to federally-regulated financial institutions after the Financial Stability Board published international underwriting principles.
“Given the current uncertainty and volatility in global capital markets, historically low interest rates, higher Canadian borrower debt-to-income levels, and relatively strong housing price appreciation, OSFI expects (lenders) to be extra diligent in maintaining sound and prudent mortgage underwriting practices,” Superintendent Julie Dickson wrote in the letter.
To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.
To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net.
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