CMHC Releases Third Quarter Results
OTTAWA - Canada Mortgage and Housing Corporation (CMHC) released its results for the third quarter of 2012. For the nine months ended 30 September 2012, CMHC's net income (after taxes) was $1.16 billion, which is consistent with the net income recognized during the same period in 2011. Over the last decade, CMHC has contributed more than $17 billion to reducing the Government's accumulated deficit through both its net income and income taxes. Of the $17 billion, CMHC's insurance business has contributed more than $14 billion.
CMHC continues to manage within its Insurance-in-Force limits. At the end of the third quarter of 2012, CMHC's total insurance-in-force was essentially unchanged from the second quarter of 2012.
Total insurance-in-force has increased less than 2% to $575.8 billion compared to $566.5 billion at year end 2011 as mortgage repayments continue to offset increases in the Corporation's insurance-in-force that result from providing mortgage loan insurance to qualified homebuyers.
On a year-to-date basis, homeowner insurance volumes have remained relatively stable compared to last year. CMHC's insured loan volumes are influenced by the economy, housing markets, competitive pressures and the regulatory environment. In the three months ended 30 September 2012, insured home purchase volumes declined approximately 6% while insured refinance volumes were 22% lower compared to the same period in 2011.
On a year-to-date basis, Losses on Claims have remained stable and are 5% below plan. The overall CMHC Arrears rate is 0.34% and has been improving year-to-date. Losses on Claims were $19 million (12%) lower in the third quarter of 2012 compared to the same quarter in 2011 as the number of claims received were down approximately 9%.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable housing solutions that will continue to create vibrant and healthy communities and cities across the country.