Canada Finance Minister, Bank Watchdog To Take Over CMHC Supervision
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Canadian Finance Minister Jim Flaherty said he will revamp oversight of the country's dominant mortgage insurer, Canada Mortgage and Housing Corp., by handing over day-to-day supervision of its commercial activities to Canada's bank regulator, Dow Jones reported. Under changes outlined in legislation introduced Thursday, the federal finance minister will also obtain legislative and regulatory authority over CMHC's securitization program and any new commercial programs the housing agency wishes to launch. "This legislation will enhance the governance and oversight framework for CMHC, to ensure its commercial activities are managed in a manner that promotes the stability of the financial system," Flaherty told reporters at a media event in Ottawa. The move, part of a bill to implement measures first introduced in the March 29 budget, is an effort by the Conservative government to keep a closer eye on developments in Canada's housing market, which some analysts have warned is exhibiting signs of overheating. Read more. (Subscription required.)