Pricing decisions belong to the lender. We don't set prices. We set capital requirements, and if lenders and insurers choose to pass the capital requirements on to consumers in the form of higher prices, that's a business decision and not a regulatory decision.
I think Mr. Mauris is making a series of assumptions about how risk sharing or business models or other business decisions are going to change as a result of these decisions, then forecasting price increases, and then forecasting bad things as a result of those price increases.
I would say lender risk sharing, as it's contemplated in the current consultation paper, talks about moving risk between the mortgage insurer and the lender. Logically the capital requirements would then move down for the insurer and up for the lender. As to whether they would all then move to the consumer, I would be surprised if it gets fully downloaded to the consumer. The insurer would hold less capital. The lender would hold more capital. The insurance premium would be reflected downward to consumers. The interest rate or the pricing to lender may be reflected upwards. We don't know that though. That's the purpose of the consultation, to think these things through.