Those reserves are expected to rise to $9.5-billion within four years, according to the agency's corporate plan.
The riches have raised a big red flag, and now CMHC faces pressure from all sides.
Private companies — mainly U.S.-based multinationals — are ready to rush in to the lucrative mortgage-insurance market that CMHC dominates.
Social housing advocates and opposition parties want the excess reserves to be transferred over to fund more affordable housing.
And the federal government has signalled it wants out of the housing business altogether, arguing that it's a provincial responsibility.
The solution to these pressures, sources say, could be privatization: selling the commercial parts of the agency to the private sector and keeping the social-housing parts of the corporation within government for now.
“Trial balloons are being floated around” and can be traced back to Finance Minister Jim Flaherty's office, one Bay Street source said.
“This has been in the wind for a couple of months now,” said another private sector source.
http://www.theglobeandmail.com/servlet/story/RTGAM.20061015.wcmhc1015/BNStory/Business/home
[Proofreader's note: this article was edited for spelling and typos on October 16, 2006]
Note: http://www.theglobeandm...
Ottawa Eyes Privatization Of CMHC
Posted on Monday, October 16 at 10:06 by 4CanadaContributed By
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The sooner we have another federal election and get rid of Harper and his minions the better off this country will be.
PM Harper, IMHO, does not deserve to even breathe Canadian air, let alone be a citizen, much less be the PM.
The sooner he's turfed out of office, and exported to the US the better.
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"and the knowledge they fear is a weapon to be used against them"
"The Weapon" - Rush
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Diogenes said:
"I am Diogenes the Dog. I nuzzle the kind, bark at the greedy and bite scoundrels."
Wouldn't it be nice, if once, just one time, we were proven utterly wrong and things ACTUALLY worked out for the best?
I would not mind that in the least.
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"and the knowledge they fear is a weapon to be used against them"
"The Weapon" - Rush
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"And those who were seen dancing were thought to be insane by those who could not hear the music." Friedrich Nietzsche
Being forced to buy it you are essentially insuring someone elses interests in your collateral asset. And...the price tag is ammortised across the life of the mortage meaning you are still insuring the whole original mortage up to the day you make your last payment. The fact that is has a 9 Billion projected surplus makes it clear it is over purposing itself at the expence of consumers. That money belongs only to the low income home 1st time buyers that took on low down payment mortgages, no one else. They already support their neighbours social housing throught property taxes.
Yes, get rid of it...by giving it BACK! Then, scrap the intrusive regulations that require it in the first place. Its not an industry its a bloated capatalistic finnancing practice that takes advantage of low income people. Let it suffocate.
Hal, Ottawa
However, the way I see this insurance policy is that the borrower buys it for the lender's protection and I doubt that the banks are going to want to see their paid-for-by-the-borrower insurance scam go up in smoke. No, CMHC will not be scrapped. If anything, privatization into the hands of the banks would be more likely, ultimately raising the cost to the consumer.
In the bigger picture, it is becoming increasingly hard for Americans to realize the "American Dream" of owning their own home, so why should it be easier by way of the Government run CMHC for Canadians in a "North American" society?
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Everybody got to deviate from the norm
There is an obscure little book(which i happen to have a copy of)The Lif inssuurance Conspiracy by the now prof of Colunbia schoolof journalism,Peter James Spielmann* that is well worth the read if you can find it <br />
I honestly wonder why there isn't a revolution when we are assulted on all sides by institutions claiming to be there for our benifit <br />
<br />
*<a href="http://www.jrn.columbia.edu/faculty/spielmann.asp">http://www.jrn.columbia.edu/faculty/spielmann.asp</a> <p>---<br>Diogenes said:<br />
"I am Diogenes the Dog. I nuzzle the kind, bark at the greedy and bite scoundrels."
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Everybody got to deviate from the norm
Those reserves are expected to rise to $9.5-billion within four years, according to the agency's corporate plan."
With these numbers I'm sure the banks have been after this business for years. My experience with CMHC is that they were the only outfit even willing to consider a mortgage for an old wooden house I bought in the 70's. The banks wouldn't even look at it. This house still stands today 30 years later, I go past it regularly. I'm sure it could stand for another 30. If Steve and the gang try to privatize the CMHC you can be sure they'll be hearing from me.
Frank