Finance Committee on Jan. 21st, 2022

[Romy Bowers]

In terms of the banking system, all our financial institutions have very sophisticated treasury operations and they source their funds from the capital market.

In terms of mortgage funding, there are many sources of funds. Deposits are number one, but there are a number of other financial instruments that leverage the capital market to source that funding.

[Pierre Poilievre, Conservative, Carleton, ON]

Yes. Would purchases of financial assets by the central bank from those financial institutions provide more cash to them to lend out?

[Romy Bowers]

As you know, Mr. Poilievre, CMHC, during the last financial crisis, had some special facilities set up—

[Pierre Poilievre, Conservative, Carleton, ON]

I'm sorry. I'm talking about the Bank of Canada, not CMHC.

[Romy Bowers]

Mr. Chair, with respect, I think that question should be directed to the bank.

[Pierre Poilievre, Conservative, Carleton, ON]

Okay. Here's a question for CMHC, then. What is the total dollar value of all the mortgages that CMHC backs up through guarantees, insurance, securitization or any other backing against default, the total dollar value, eliminating duplication?

[Romy Bowers]

Mr. Chair, as you're aware, CMHC plays a very important role in securing the stability of the finance market—

[Pierre Poilievre, Conservative, Carleton, ON]

Just the number, please.

[Romy Bowers]

—through our securitization program.

[Pierre Poilievre, Conservative, Carleton, ON]

I'm just looking for the numbers, please.

[Romy Bowers]

About $400 billion.

[Pierre Poilievre, Conservative, Carleton, ON]

Wait a second. Does that include everything through securitization and mortgage insurance? Everything...?

[Romy Bowers]

If you look at our financial statements, our current guarantee balance is in the $400-billion range.

[Pierre Poilievre, Conservative, Carleton, ON]

I didn't ask about guarantees. I asked about guarantees and insurance and any other backing that you give for mortgages, the total—total, total—value of all of the liabilities backed up by CMHC.

[The Chair, Liberal, Peter Fonseca]

That's the time you have, Mr. Poilievre.

We're moving now to the Liberals for six minutes.

Go ahead, Mr. Baker.

[Pierre Poilievre, Conservative, Carleton, ON]

I have a point of order.

We've already been through this with you. Normally, we allow the witness a few seconds to answer a question if it is asked just before the time runs out. You agreed to do that for the NDP—

[The Chair, Liberal, Peter Fonseca]

I did. Of course, I do that for everybody, but—

[Pierre Poilievre, Conservative, Carleton, ON]

Okay, so we'll let her do that. We'll let her answer the question.

[The Chair, Liberal, Peter Fonseca]

—I heard the witness. I thought the witness had answered the question, but go ahead, Ms. Bowers. You have about five seconds.

[Pierre Poilievre, Conservative, Carleton, ON]

I'd like just the total dollar value, Ms. Bowers. Thank you.

[Romy Bowers]

As I pointed out, the total value of our securitization, which is our total exposure, is about $400 billion.

[Pierre Poilievre, Conservative, Carleton, ON]

Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you.

Now we'll move to the Liberals and Mr. Baker for six minutes.

[Yvan Baker, Liberal, Etobicoke Centre, ON]

Thanks very much, Chair.

I want to say, Chair, I think you're doing a very fine job of leading our meeting—

[Pierre Poilievre, Conservative, Carleton, ON]

I have a point of order.