Quote:
Originally Posted by Shazam
Well, yeah. How much professional liability insurance do you have? How about E&O insurance?
It's pretty easy to think you're absolved of anything when it turns out that, well, you're not really responsible for your own actions.
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That is the beauty of CMHC, the system basically creates a moral hazard for Banks. They can lend at will and not really be overly concerned about the consequences. The reason BMO has to go this route is that a Master in Alberta (I think Laycock, but don't quote me on that) ruled that they could not get deficiency judgments on their mortgages from 2004 through 2009 because they failed to include CMHC clause in the body of mortgage, rather it was in the standard terms. If they had received deficiency judgments on their properties, at the very least, it would not be BMO pursuing this action.