Toronto, Ontario (PRWEB) November 03, 2012
Finance Minister Jim Flaherty, who has already stirred the nation with consecutive policy changes in the last four years, is once again making headlines with news of possible CMHC’s privatization. As reported in an article published by the Globe and Mail on 22nd October, Mr. Flaherty also stated that he wishes to see it happen in the next five to ten years.
Marcus Arkan, CEO of Syndicate Mortgages shares some information that clarifies the intention and purpose behind the federal plan to privatize a major cash cow.
According to Mr. Arkan, almost every decision Mr. Flaherty has taken so far was targeted to save the market from extreme conditions that caused the US real estate bubble burst. He explained, “With four major changes in four years, the current government is trying to reduce the exposure that is there for taxpayers. Flaherty is now of the opinion that there is not much to do with CMHC or mortgage insurance anymore.”
Mr. Arkan showed great concern regarding this issue and stated that Ottawa should consider all the consequences before relinquishing control of one of the major leveler on the market. According to Globe and Mail, Mr. Flaherty considers CMHC as one of the major part of Canada’s financial stability picture and tagged its recent performance as off on its own track. On other hand, Mr. Arkan, along with other analysts and economists, blame the quite changes made by Ottawa as the reason behind corporation’s lagging performance.
Mr. Arkan stated that it is not Mr. Flaherty’s comments that have stirred confusion in the market but the timing. He stated, “To be honest, the effects of this year’s changes in mortgage rules are still not clear. Meanwhile, the news of CMHC’s flawed data is also circling the market. Mr. Flaherty’s may be talking about what might happen five or ten years later, but it still doesn’t seem like a right time to plan ahead.”
Finally, Mr. Arkan shared some official figures according to which CMHC is making around $1 billion in profits every year along with having a $5 billion retained profits. CMHC’s corporate plan reveals that these reserves are expected to hit nine and a half billion within the next four years. “While there will be a number of negative consequences such as fewer government backed securities, there is no doubt that multinationals and huge private corporations would rush in to capture the lucrative mortgage insurance market through CMHC,” Mr. Arkan concluded.
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062