The Frontier Centre for Public Policy has just released Public Choice Alternative: Canada Mortgage & Housing Corporation by Ian Madsen, a senior policy analyst with the Frontier Centre for Public Policy. The paper conducts an in depth valuation of the alternative choices for Canadian taxpayers if the federal government sold CMHC.
Canada Mortgage and Housing Corp. is a Crown corporation owned by the Government of Canada. It has become a prominent force in the Canadian housing market, providing financial backing to prospective homeowners who are looking to buy homes but lack the necessary down payment to qualify for a standard mortgage. Approximately two-thirds of all mortgaged Canadian homes are insured by CMHC. These mortgages are some of the riskiest in Canada and could directly affect taxpayers in the same way CMHC’s counterparts Fannie Mae and Freddie Mac contributed to the US subprime mortgage crisis. Madsen’s valuation explores the alternative choices Canadians would have if CMHC was sold.
To read this critical valuation of CMHC, click here: FC210_CMHCValuation_JA3118_F1