We all know that the CMHC has bitten off so much that it has put significant risk on the back of tax-payers should the housing market take a big nose dive.
Well maybe someone doesn't want us to remember why.
Missing documents on the CMHC site and even 'sanitized' Wiki pages sounds like subterfuge and skullduggery. However we may just be looking at such an event. I came across this information on one of my favorite blogs.
I suggest reading this post, especially the second half and make up your own mind.
CHMC plans to expand securitization of debt to 370 billion by the end of 2009 as per the Conservative government request.
In 2008, Canadian home prices started to dip as affordability became the worst on record in many cities.
- CMHC publicly admitted that it was ordered to approve as many high risk borrowers as possible to prop up the housing market and keep credit flowing. In 2008 some 42% of all high risk applications were approved, a 33% increase over 2007
According to CHMC figures from 2008 and 2007 it is clear that CMHC has drastically exceeded their planned figures. It is expected that 812 billion is more than likely to be a minimum target. At these rates of progression the Government of Canada will in effect be insuring well over $500 billion in securitized mortgages and lines of credit by the end of 2010. The Canadian Government will also have issued over $600 billion in outstanding mortgage insurance. Many economists are unsure if this level of individual mortgage debt or CMHC mortgage securitization is sustainable. If it turns out the CMHC's debt levels are not sustainable the Canadian taxpayer will be negatively affected (by and increased tax burden relating to CMHC's maintenance and support) for potentially a decade or more.