Mr. Speaker, in response to (a), through the insured mortgage purchase program, $65.46 billion of National Housing Act mortgage backed securities have been purchased to date. National Housing Act mortgage backed securities are marketable securities comprised of pools of insured Canadian residential mortgages; the National Housing Act mortgage backed securities are guaranteed by Canada Mortgage and Housing Corporation under the National Housing Act and hence carry the guarantee of the Government of Canada.
In response to (b), there have been no defaults of the National Housing Act mortgage backed securities purchased under the insured mortgage purchase program. Since the securities purchased by Canada Mortgage and Housing Corporation already carry the guarantee of the Government of Canada through the insurance, there is no additional risk to the taxpayer. This activity also carries no fiscal cost to the taxpayer. In fact, since the National Housing Act mortgage backed securities purchased by the government pay a return generally in excess of the rate the government pays to raise the funds used to purchase the National Housing Act mortgage backed securities, the government expects to earn net revenue on the program.
In response to (c), it is expected that the National Housing Act mortgage backed securities purchased under the insured mortgage purchase program will be held until their maturity.
In response to (d), a summary of the results of each National Housing Act mortgage backed securities auction operation is available on Canada Mortgage and Housing Corporation’s website, www.cmhc.ca, following each auction, and includes the highest accepted yield, the lowest accepted yield, and the average accepted yield. Due to the confidential nature of the information, Canada Mortgage and Housing Corporation does not release the identities of participating institutions or the level of their participation.
In response to (e), due to the confidential nature of the information, Canada Mortgage and Housing Corporation does not release the identities of participating institutions or the level of their participation. However, it is important to note that, as mentioned above, despite which organization they were purchased from, the National Housing Act mortgage backed securities are comprised entirely of insured Canadian residential mortgages.
In response to (f), Canada Mortgage and Housing Corporation borrows the funds to purchase the National Housing Act mortgage backed securities from the government which funds itself through Government of Canada bond and treasury bill auctions. Canada Mortgage and Housing Corporation borrows the funds at the same interest rate as the average auction rate which the National Housing Act mortgage backed securities are purchased from the financial institutions.
In response to (g), the Bank of Canada acts as a fiscal agent for the government in its debt management activities. The Bank of Canada does not issue on its own behalf market debt or stock to raise funds.