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OSFI Consulting On Negative Amortization Mortgages, Banks Addressing Risk

CANADA
  • Bloomberg reports the OSFI’s Routledge saying the economy is doing better than expected, with the regulatory body to wait for more information before deciding on bank capital levels in December.
  • On mortgages, he says the body is still consulting with banks on negative-amortization mortgages and that they have a “precise” view into the negative-amortization problem.
  • The OSFI has previously proposed tougher bank rules on extended mortgages back in July, at the time being open for comment until Sep 1 (see more here).
  • He goes on to add that banks are beginning to address mortgage risk.

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