Quote:
Originally Posted by Red
When was Fannie Mae ever in trouble?
Before the crash that is.
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So you can't answer my question. Didn't think so.
Pierre Serré, Vice- President, CMHC Insurance Product and Business Development
"We focus on prudent underwriting practices and the adequacy of our capital levels. CMHC is well positioned through its available capital to handle even extremely adverse economic conditions.”
He noted that CMHC has a total of $17.4 billion that could be used to back-up its insurance business and pay claims.
$17.4 billion.
Portfolio of $540 billion.
23% of portfolio is above 80% LTV.
That's $124 billion.
So, we need houses prices to drop 14% and everyone of those people to lose their jobs, default and walk on their mortgages and CMHC can cover all the banks loses on those mortgages.
If all that happens I'll apply your broad useless generalization and say that you'd be a taxpayer subsidization before CMHC would.