Canada Gazette, Part I, Volume 149, Number 23: Regulations Amending the Insurable Housing Loan Regulations
June 6, 2015
Statutory authority
National Housing Act
Sponsoring department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see Regulations Amending the Eligible Mortgage Loan Regulations.
PROPOSED REGULATORY TEXT
Notice is given that the Minister of Finance, pursuant to subsection 8.1(1) (see footnote a) of the National Housing Act (see footnote b), proposes to make the annexed Regulations Amending the Insurable Housing Loan Regulations.
Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Wayne Foster, Director, Capital Markets Division, Department of Finance, 90 Elgin Street, 13th Floor, Ottawa, Ontario K1A 0G5 (tel.: 613-369-3968; fax: 613-369-3894; email: finlegis@fin.gc.ca).
Ottawa, May 20, 2015
JOE OLIVER
Minister of Finance
REGULATIONS AMENDING THE INSURABLE HOUSING LOAN REGULATIONS
AMENDMENTS
1. Subsection 1(1) of the Insurable Housing Loan Regulations (see footnote 1) is amended by adding the following in alphabetical order:
“Act”
« Loi »
“Act” means the National Housing Act.
2. Subsection 5(1) of the Regulations is amended by striking out “and” at the end of paragraph (i), by adding “and” at the end of paragraph (j) and by adding the following after paragraph (j):
- (k) if the loan is part of a pool of loans on the basis of which securities have been issued after December 31, 2015, all securities issued on the basis of the pool must be guaranteed under subsection 14(1) of the Act.
3. (1)Section 6 of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):
- (c) the loan must be part of a pool of loans on the basis of which securities that are guaranteed under subsection 14(1) of the Act have been issued, unless
- (i) for at least one day in the previous six months, the loan was part of such a pool of loans or was not insured,
- (ii) the loan cannot be part of such a pool of loans as a result of having fallen into arrears, and it was insured at the time it fell into arrears and has since remained insured,
- (iii) the loan is part of a pool of a loans on the basis of which securities that are not guaranteed under subsection 14(1) of the Act have been issued, but no new securities have been issued on the basis of the pool after December 31, 2015, or
- (iv) the loan is insured on an individual basis on either the day on which it is funded or the day on which additional money is advanced to the borrower as part of the loan's refinancing.
(2) Section 6 of the Regulations is renumbered as subsection 6(1) and is amended by adding the following:
Exception
(2) The criterion set out in paragraph (1)(c) does not apply if at least 97% of the lender's insured low ratio loans, other than those that are insured on an individual basis, fall under one of the situations referred to in that paragraph or are exempt from that criterion under subsection 8(3) or section 8.1.
4. Subsection 8(2) of the Regulations is replaced by the following:
Low ratio loans — October 15, 2008 to April 17, 2011
(2) The criterion set out in paragraph 6(1)(a) does not apply to a low ratio loan in respect of which the Corporation received a housing loan insurance application during the period beginning on October 15, 2008 and ending on April 17, 2011.
Low ratio loans — before January 1, 2016
(3) The criterion set out in paragraph 6(1)(c) does not apply to a low ratio loan that is not part of a pool of loans on the basis of which securities have been issued if the Corporation received a housing loan insurance application in respect of the loan — or in respect of the portfolio of loans to which the loan will belong for insurance purposes — before January 1, 2016, unless the application has been denied or the loan has ceased to be insured under insurance resulting from the application.
5. The Regulations are amended by adding the following after section 8:
TRANSITIONAL PROVISIONS
January 1, 2016 to December 31, 2017
8.1 (1)During the period beginning on January 1, 2016 and ending on December 31, 2017, the criteria set out in paragraphs 5(1)(k) and 6(1)(c) do not apply to a loan that is part of a pool of loans on the basis of which securities were issued before January 1, 2016 if the total amount of insured loans that are part of the pool does not exceed the total amount of all insured loans that were part of the pool on June 30, 2015.
January 1, 2018 to December 31, 2020
(2) During the period beginning on January 1, 2018 and ending on December 31, 2020, the criteria set out in paragraphs 5(1)(k) and 6(1)(c) do not apply to a loan that is part of a pool of loans on the basis of which securities were issued before January 1, 2016 if the total amount of all insured loans that are part of the pool does not exceed 50% of the total amount of all insured loans that were part of the pool on June 30, 2015.
COMING INTO FORCE
6. These Regulations come into force on January 1, 2016, but if they are published in the Canada Gazette, Part II, after that day, they come into force on the day on which they are published.
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