CMHC Releases 2014 First Quarter Results

OTTAWA, May 30, 2014 — 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.

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-05-30-0816.cfm

Source : Charles Sauriol,

Media Relations
613-748-2799
csauriol@cmhc-schl.gc.ca

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