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MNI (Washington)
By Greg Quinn
     OTTAWA (MNI) - Canada's federal housing agency signaled it may need a
government bailout as the Covid-19 pandemic triggers a surge in unemployment and
mortgage insurance claims, a scenario it long claimed was nearly impossible.
     Canada Mortgage and Housing's annual report published Tuesday said
"increases in insurance claims losses may occur, however we are currently unable
to estimate the potential impact on our financial results or condition."
     "In the event our capital position may be impacted, under the Capital and
Dividend Policy Framework for Financial Crown Corporations, the Government would
stand prepared to inject capital into CMHC should additional capital be needed
to deliver on our public policy mandate," the report said.
     The agency may also be asked by the government to take on even more risk to
stabilize housing markets, CMHC said. "There can be no assurance of the impact
or magnitude of these events on our future financial results."
     The Ottawa-based agency is the main provider of mortgage insurance in
Canada and also takes the lead at packaging mortgages into pools that are turned
into bonds. 
--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com
[TOPICS: M$C$$$,MC$$$$,M$$CR$]
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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