Welcome!

News Feed Item

CMHC Releases 2014 First Quarter Results

OTTAWA, ONTARIO -- (Marketwired) -- 05/30/14 -- Canada Mortgage and Housing Corporation (CMHC) released today its results for the first quarter of 2014. Net income for the quarter was $406 million, up 7% year-over-year. Insurance-in-force at quarter-end was $555 billion, a reduction of $2 billion from the 4th quarter of 2013. The increase in net income is mainly attributable to higher earnings from investments and lower insurance claims expenses, both a result of improved economic conditions.

Total insured volumes ($) for the three months ended 31 March 2014 increased by 14 per cent compared to the same period in 2013. The increase in 2014 is the result of higher volumes of portfolio insurance and can be attributed to lenders changing the timing of their take-up of the portfolio insurance product in 2014. Insured volumes ($) for transactional homeowner insurance was approximately 2% lower in the first quarter of 2014 relative to the same period in 2013.

For transactional homeowner approved loans, the average credit score in the first quarter of 2014 was 743 while the average gross debt service (GDS) ratio was 26.2% during this same period. The high average credit score and average GDS ratio demonstrates a strong ability among homebuyers with CMHC-insured mortgages to manage their debts.

The strength of CMHC's mortgage insurance portfolio is further demonstrated by the overall arrears rate of 0.35 per cent at March 31, 2014. Arrears rates have remained stable over the past several years.

To help readers better understand the business undertaken by CMHC, the Corporation is also publishing a supporting supplemental document containing a range of statistics and data on its mortgage insurance business. The supplement provides meaningful insight into CMHC's mortgage insurance operations and will provide market participants with data that will allow them to better analyze our activities in the Canadian housing market.

Guarantees-in-Force

CMHC's guarantees-in-force totalled $399.6 billion as at March 31, 2014, which is a $1.9 billion increase from the 4th quarter of 2013.

Assisted Housing

CMHC works closely with provinces, territories and housing providers, including First Nations, to help low-income Canadians access affordable, better quality housing off- and on-reserve. For the three months ended 31 March 2014, CMHC provided nearly $600 million for housing programs on behalf of the Government of Canada.

Economic Action Plan 2013 confirmed the Government of Canada's continued commitment to working with provinces and territories to develop and implement solutions to housing by renewing the Investment in Affordable Housing (IAH) to March 2019. On 4 March 2014, the Governments of Canada and British Columbia announced the extension of the IAH agreement to March 2019, for a combined federal/provincial investment of more than $300 million.

Since then, on 25 April 2014, the Governments of Canada and Prince Edward Island announced the extension of the IAH agreement to March 2019, for a combined federal/provincial investment of some $15 million, on 28 April 2014, the Governments of Canada and New Brunswick announced the extension of the IAH agreement to March 2019, for a combined federal/provincial investment of $78 million and on 2 May 2014, the Governments of Canada and Alberta announced the extension of the IAH agreement to March 2019, for a combined federal/provincial investment of more than $200 million.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable housing solutions that will continue to create vibrant and healthy communities and cities across the country.

For additional highlights please see attached backgrounder.

This release is also available at CMHC.ca/Newsroom. For more information, visit www.cmhc.ca or call 1-800-668-2642.

Follow CMHC on Twitter @CMHC_CA

BACKGROUNDER

Key Statistics - as of March 31, 2014.


--  CMHC continues to be the only mortgage loan insurer for large multi-unit
    residential properties including nursing and retirement homes. The
    Corporation's support for these forms of housing is important to the
    supply and maintenance of a range of housing options in Canada.

--  CMHC contributes to the stability of Canada's housing finance system,
    including housing markets, by providing qualified Canadians in all parts
    of the country with access to a range of housing finance options in both
    good and bad economic times.

The following statistics are included in CMHC's new mortgage loan insurance supplement and provide a high-level summary of new loans insured by CMHC during the first quarter of 2014.


                              ---------------------------------------------
                                               3 Months Ended 31 March 2014
                              ---------------------------------------------
                                Transactional                    Multi-Unit
                                    Homeowner      Portfolio    Residential
---------------------------------------------------------------------------
Average insured loan amount          $233,623       $246,002        $55,391
---------------------------------------------------------------------------
Average GDS(i)                          26.2%            N/A            N/A
---------------------------------------------------------------------------
Average credit score at
 origination(ii)                          743            769            N/A
---------------------------------------------------------------------------
Average amortization (years)               25             26             28
---------------------------------------------------------------------------
(i)GDS not available for portfolio or multi-unit loans
(ii)Credit scores do not apply for multi-unit properties

The following statistics are included in CMHC's new mortgage loan insurance supplement and provide a high-level summary of all loans insured by CMHC.



                                  ------------------------------------------
                                                         As at 31 March 2014
                                  ------------------------------------------
                                   Transactional                  Multi-Unit
                                       Homeowner     Portfolio   Residential
----------------------------------------------------------------------------
Average outstanding loan amount         $181,012      $151,963       $54,182
----------------------------------------------------------------------------
Average GDS(i)                             23.5%           N/A           N/A
----------------------------------------------------------------------------
Average credit score at
 origination(ii)                             729           758           N/A
----------------------------------------------------------------------------
Average amortization at
 origination (years)                          27            22            26
----------------------------------------------------------------------------
(i)GDS not available for portfolio or multi-unit loans
(ii)Credit scores do not apply for multi-unit properties

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and atten...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to m...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.