Finance committee Yes, I would like to clear that up. As I said, we are the insured. We are the ones making the claims. The rules on insurance and the insured are pretty clear. They can't make inducements to us. It's illegal. So I don't think there'd be any kickbacks.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee Yes, I do. I think when you have this much interest in this marketplace, the implication is that there is some room for rates to move down, and that more competition will improve pricing. I can't guarantee it, but that would be my suspicion.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee I expect so. That's what I do.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee I think I'm going to have to wait and see what they have to offer. It's a fair bit of work to hook up a new supplier--to put it that way--and roll that out. There has certainly been a lot of interest and a lot of interesting ideas on the innovation they can bring to the marketplace.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee The difference, why the lender decides, is because it's the lender who is insured and who makes the claims. It's a very fundamental difference.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee They'll see all of it. It's so competitive. First of all, it's very transparent. They pay exactly the premium. It's not like the lender puts anything overtop of that or around that. They pay purely the premium that's charged. They're very savvy. They're not unsophisticated at all.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee That's how it's done today, yes.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee If I could add to that too, from a lender perspective, we're looking for suppliers who basically go where we're going. If we had a supplier who said they only want to do the urban markets, we're not likely to invite them to join with us. So it's quite important. We are a national lender.
May 29th, 2006Committee meeting
Catherine Adams
Finance committee Thank you, Mr. Chair. I would like to thank the committee for providing the opportunity for RBC to comment on the issue of allowing new competition into the mortgage insurance market. As the largest mortgage provider in Canada, and thus a large consumer of mortgage insurance, we clearly have a keen interest in this matter.
May 29th, 2006Committee meeting
Catherine Adams