Finance committee  That is absolutely correct. It's not the function of the regulator to determine who the mortgage insurance will be provided to. It's a business decision. There will be no obligation to expand.

Finance committee  I think the basic answer to your question, Mr. McKay, is that in this area of mortgage insurance, we have a public sector provider. It is in CMHC's mandate to serve markets that may not be served by the private sector insurers. I think that where public policy in this area deals with the access to mortgage insurance is through the mandate of the public provider.

Finance committee  Thank you for the question and for the opportunity to respond. First, If would say that CMHC's mandate as set out under the National Housing Act would not be affected by this provision. In fact, the market has long been open to new entry. CMHC does provide mortgage insurance in all parts of Canada, including in the north, on reserve, rural, single-industry towns, and so on.

Finance committee  Let me take the first question, on whether or not there's a likelihood that the wool has been pulled over my eyes in the discussions I've had with new entrants. Of course that's always possible. However, new entrants have to get an approval from the Superintendent of Financial Institutions.

Finance committee  Yes, although I would note that it might be relevant in this connection, Mr. Chairman, but that's for you to determine. I would note that as part of OSFI's risk assessment, they do an assessment of the reputational risk that any provider in this segment of the financial sector or others may face.

Finance committee  Thank you, Mr. Chair. I'll just take the first amendment, if we're discussing the first one first. This amendment, as I see it, would have a regulator or a policy-maker stepping into business decision-making in the sense of determining to whom a particular product should be sold, the conditions under which it would be sold, and the location where it would be sold.

Finance committee  It is certainly not a function that is now performed by a regulatory body. It's really business decision-making that determines to whom the products are sold. The sector is regulated. The Superintendent of Financial Institutions regulates the risk of mortgage insurers. Since insurance is a shared jurisdiction, provincial governments regulate market conduct of insurance companies, including mortgage insurers; the committee heard testimony about certain practices that are prohibited under provincial law.