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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

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