By Tom Bradley

There’s a terrific article in the Globe and Mail today. It’s based on an interview with the new CEO of Canada Mortgage and Housing Corporation (CMHC), Evan Siddall. It’s terrific because Mr. Siddall and his team are taking CMHC back to where it should be.

The authors, Boyd Erman and Tara Perkins, outline how Mr. Siddall is “focused on building an organization that will be more flexible and transparent, one that will do more to emphasize its social housing role and less to subsidize the banks. And one that will only help Canadians purchase homes they need. That will result in fewer and smaller new insurance policies, and will stem the risk to Canadian taxpayers of losses at CMHC should the housing market slump.”

In Mr. Siddall’s own words, “We help Canadians meet their housing needs, not exceed them.”

In recent months, CMHC has taken specific steps to back up what he’s saying:

• The price of homes that can be insured has been limited to $1 million.
  
• Borrowers can no longer insure more than one property.
  
• The amount of portfolio insurance (bulk insurance to the banks) has been reduced.
  
• Insurance on construction loans for condominiums has been discontinued.

All I can say is, right on! CMHC shouldn’t be in the business of stimulating an overstimulated real estate market. It shouldn’t be taking on risks that rightfully belong on the balance sheets of the banks.

What’s happening at CMHC is fundamentally improving the foundation of the Canadian economy and will make it a better place for families and companies to pursue their goals.