Finance committee  That's right.

Finance committee  Numbers of companies and permutations of companies have come in and out of the Canadian marketplace over the past 10 to 15 years. As Ling explained, what we currently call Canada Guaranty used to be AIG, and what is currently Genworth used to be the Mortgage Insurance Company of

Finance committee  The government, as part of this legislation, will be offering a 90% guarantee to backstop the failure. If there were to be a failure in a private mortgage insurer, the government would provide a 90% backstop for the mortgage insurance that had been guaranteed by that company. Tha

Finance committee  Contracts are usually private between the two contracting parties. Unless the other party decided to make their contract available to a third party, it would be a private document. And, yes, the outcome of having this piece of legislation to replace the private contracts is tha

Finance committee  Your first question was whether the legislation is the same for the private mortgage insurers as it was for CMHC.

Finance committee  CMHC currently has a piece of legislation. Actually there are several, but you'll see at the very end of part 7 that there are consequential amendments. Those consequential amendments are to the National Housing Act. That act is what CMHC is obligated to follow.

Finance committee  No.

Finance committee  We do not anticipate that there would be any change in liability. The companies are currently active within the Canadian marketplace pursuant to a contract with the government. As I said, this legislation is basically transforming that contract into a piece of legislation, so we'

Finance committee  I am Jane Pearse, and I am the director of the financial institutions division at the Department of Finance.

Finance committee  We have had a situation in Canada for a number of years now, probably back to the 1980s, where we've had private mortgage insurance offered within Canada. There was a decision to give CMHC a commercial mandate to offer mortgage insurance and to allow private mortgage insurers to

Finance committee  Yes.

Finance committee  There are actually more companies named in this piece of legislation than currently are offering business as private mortgage insurers in Canada. A contract had been written in the past, and this section of the legislation makes sure that all of the contracts that have ever been

Finance committee  One is Genworth Canada and the other is Canada Guaranty.

Finance committee  That's right. The same constraint exists at present in the case of the banks.

Finance committee  Under this proposal, each institution that becomes a federal institution, under the bill, will only have the powers that exist at the time for banks.