Mr. Chair, I don't have the ability to forecast things like that, but I can assure you that at CMHC we take risk management very seriously. We run a commercial mortgage loan insurance business. We conduct stress testing to ensure that we have enough capital to ensure that we're protected against loss.

Currently, the levels of arrears are very low, less than 0.5% of our entire book, which is incredibly low. I know we're going through some very difficult economic times, but to date, because of the strong employment picture, we are not seeing losses coming through our mortgage book.

This is not to say we're complacent. We are monitoring the environment continually to ensure that we have enough capital to withstand any losses.

4:40 p.m.

Conservative

Michelle Ferreri Conservative Peterborough—Kawartha, ON

Thank you, Mr. Chair.

Under your joint mission statement it says, and this is under CMHC, “by 2030 everyone in Canada has a home they can afford and [that] meets their needs.” Are you familiar with that statement?

4:40 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

Mr. Chair, I am familiar with that statement.

4:40 p.m.

Conservative

Michelle Ferreri Conservative Peterborough—Kawartha, ON

If you're not meeting the needs now, what is your plan to achieve that by 2030?

4:40 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

Our 2030 goal is like our North Star. It's what guides the work of all our employees. It is aligned to the sustainable development goals of the United Nations, and we aspire to achieve that through effective delivery of the national housing strategy and through the effective delivery of our commercial programs.

We also feel that CMHC has a very important role in providing housing market insights through the reports drafted by people like Mr. Bob Dugan, who's on the call today. In addition to that, we have contacts with many players in the housing market, be they non-profit organizations or private developers. We feel CMHC has a very important role as a convenor in making sure all players in the housing sector work together to provide affordable housing for all Canadians.

4:40 p.m.

Conservative

Michelle Ferreri Conservative Peterborough—Kawartha, ON

Thank you.

If you don't meet that goal, what happens? Is there any recourse? Is it just “pie in the sky” and there's no actual enforcement of it?

4:40 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

I view that as an aspirational statement. It's like our moonshot. It's like our North Star that guides our activity. It's likely that we're not going to achieve it, but we feel that there's a lot of value in trying for it. If you don't aim high and try for it, you're not going to get there.

Our goal is to say that this 2030 goal is CMHC's aspiration, but we feel that it should be the aspiration for all Canadians. We've been really encouraged by seeing other housing organizations actually adopting that goal, because I feel that housing is a team sport in which all sectors of Canadian society are working together. We feel that's the best way to achieve housing affordability for all.

4:40 p.m.

Conservative

Michelle Ferreri Conservative Peterborough—Kawartha, ON

Thank you.

Mr. Chair, I would push back a little and say that a plan and measurable targets would be a lot better than an aspirational goal. When you are spending $4.5 billion of taxpayers' money and you can't gauge homelessness.... I know that in my community of Peterborough—Kawartha, there are more tent cities, and there are people who are struggling. I'm very confused as to why it's so complex that you can't gauge that. I think that's very frustrating to Canadians and anyone who is watching so many people suffer.

I want to give you a very specific example. In my riding of Peterborough—Kawartha, there are people really working to solve the housing crisis. Peterborough Housing Corporation currently has an application for an 85-unit build, with a mix of senior, affordable, supportive and at-market units. As of today, there are 344 people on the by-name priority list. Twenty-seven are 65 years of age or older, and 60 are 55 years of age or older. Ten per cent of the people who are 55 years of age or older are currently living outdoors. As of September 16, 202 people are on the wait-list for assisted living in Peterborough through our VON.

I wrote a letter to the Minister of Housing, asking for support through CMHC, and it has come back to me that the minister has put it back on CMHC to see what you guys will do. It says that the “National Housing Strategy...is helping those most in need find a place to call home. This includes seniors, persons with disabilities, those dealing with mental health and addiction[s] as well....”

You have sent back a note here to this organization that has gotten approval, much to what you were saying: The neighbours are supportive; the community is supportive. They're solving that gap; they're closing that gap. They're helping. It is said that the situation has come up that CMHC is placing this funding in jeopardy. They're very frustrated, because you have not communicated with them in a timely manner.

I know you're at the top, and maybe you don't know that this is going on—my colleague, Mr. Long, brought this up—and you said you care, but these are the real stories of things that are not being completed because of the bureaucracy. I don't want an aspirational statement, with all due respect. I'd like to know how you prevent this from happening and what your response is to these people who are waiting on these homes.

4:45 p.m.

Liberal

The Chair Liberal Bobby Morrissey

Thank you.

Could we get quickly to the point with your answer, Ms. Bowers?

4:45 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

Mr. Chair, I appreciate feedback like this. We have housing representatives spread across Canada. I will take this particular project away, and I'll try to get back to you as soon as I can.

4:45 p.m.

Liberal

The Chair Liberal Bobby Morrissey

Thank you, Ms. Ferreri.

Mr. Coteau, you have five minutes, please.

December 5th, 2022 / 4:45 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

Thank you, Mr. Chair, and thank you so much to the witnesses for being here today.

I'm fairly new to government, at least to the House of Commons. It's been a year. I know this program, this initiative—the $72 billion that's been invested—has been an incredible initiative to help Canadians. I've always associated home ownership with reaching the Canadian dream of participating fully in society. I also know that you've only had about five years to rebuild a program that was lost for decades. Governments in the past did not invest properly into this area, and the $72-billion investment is going to have a huge impact on helping Canadians.

My question to you is this: What were some of the biggest challenges? You mentioned that you had to reconnect with organizations on the ground. What were some of the big challenges that your organization had to go through over the last five years to reconnect, rebuild and re-establish the Canadian government as a major player in home affordability challenges?

4:45 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

Mr. Chair, in answer to that question, CMHC has gone through tremendous changes over the last five years. Prior to the national housing strategy, CMHC was focused on its commercial mandate. We were delivering mortgage insurance products and working primarily with the financial institutions sector.

The national housing strategy represented a return after three decades to working with clients of a totally different type. We've had to re-establish ties with the non-profit community. We've had to work more closely with provincial, territorial and municipal governments. That has required a retooling of our processes and our technology and, possibly most importantly, a change in culture at CMHC.

This focus on client service and understanding the specific needs of the non-profit sector are things we have improved, but it's a continuous learning process.

4:45 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

It's a different culture [Inaudible—Editor].

4:45 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

Yes.

4:45 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

The rapid housing program is now in its third phase, I think. What have you learned from a program specifically like that one, which was highly successful in terms of going from first to third phase? How have you made improvements?

4:45 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

I can give a large number of examples. We have simplified the application process. We've made the portal more accessible. We've identified specialized client groups that can support the proponents who are applying. We have learned to get the funding out the door more quickly. I have to say it's actually easier to get funding out the door, because the due diligence is much less complicated for a grants program than for a loan program. We've taken a lot of lessons to simplify our processes.

In terms of legal agreements, our legal group has worked tirelessly to simplify them. Again, I want to always point out that there's always a tension between client experience and speeding up the process and making sure we have the right checks and balances to make sure government funds are being used for their intended purpose. There's always that little bit of a tension. We're trying to make sure we have good governance but at the same time good client experience.

I can give many more examples, but it's that cultural change element. As you know, and from my experience, it takes time to change the culture of an organization. I've been at CMHC as CEO for over a year and a half. I can assure you that CMHC employees are very committed—not that we're perfect, but we're trying our best to learn from our mistakes and do our best to serve Canadians.

4:50 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

With regard to data collection, a lot of organizations now have started to lean in towards disaggregated race-based data. I know there are huge discrepancies in housing when it comes to home ownership among different communities. I think Statistics Canada has about $150 million earmarked specifically for the collection of disaggregated race-based data. Are there any plans in the future to tap into that type of collection?

4:50 p.m.

President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Romy Bowers

CMHC works very closely with Statistics Canada, specifically on those race-based housing statistics. You're absolutely right that there are very different housing outcomes depending on race. For example, on home ownership there's a 30% differential between the home ownership rates of Black Canadians versus white Canadians.

CMHC's policy and research group has done a number of reports to highlight these discrepancies, and it's our intent.... You know, there are a lot of gaps in housing data. At CMHC we're working as quickly as we can to close those gaps.

4:50 p.m.

Liberal

Michael Coteau Liberal Don Valley East, ON

I've seen some of the research done years ago, where you had some communities closer to 20% and some as high as 85% home ownership. The gap is extreme in some cases. I'm happy that the organization has tapped into that type of research. I look forward to seeing some updates on that in the future.