CMHC firm on not disclosing foreclosure information
Canada Mortgage and Housing Corp. is making no apologies over its tactic of not disclosing a house has been repossessed when it puts the home back on the market.
A recently released report stating that the Canada Mortgage and Housing Corporation (CMHC) is not listing properties as foreclosed has sparked a lively debate, with many wondering if more information should be disclosed. In response to the controversy, Mark McInnis, vice president insurance, underwriting, servicing and policy with the CMHC discussed the policy with the Financial Post.
It is the belief that when a property is listed as foreclosed, it attracts less than serious offers, and skews the representation of fair market value. In addition, only 0.32% of Canadian mortgages are in arrears, making the decision whether or not to post foreclosures almost irrelevant at this point. According to the CMHC, in only 20% of cases do they become the vendor of a distressed property. In the remaining cases, the homes are sold by the bank.
Click here to read the full article from the Financial Post.