Vol. 149, No. 23 — June 6, 2015

Regulations Amending the Insurable Housing Loan Regulations

Statutory authority

National Housing Act

Sponsoring department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see Regulations Amending the Eligible Mortgage Loan Regulations.

PROPOSED REGULATORY TEXT

Notice is given that the Minister of Finance, pursuant to subsection 8.1(1) (see footnote a) of the National Housing Act (see footnote b), proposes to make the annexed Regulations Amending the Insurable Housing Loan Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Wayne Foster, Director, Capital Markets Division, Department of Finance, 90 Elgin Street, 13th Floor, Ottawa, Ontario K1A 0G5 (tel.: 613-369-3968; fax: 613-369-3894; email: finlegis@fin.gc.ca).

Ottawa, May 20, 2015

JOE OLIVER
Minister of Finance

REGULATIONS AMENDING THE INSURABLE HOUSING LOAN REGULATIONS

AMENDMENTS

1. Subsection 1(1) of the Insurable Housing Loan Regulations (see footnote 1) is amended by adding the following in alphabetical order:

“Act”
« Loi »

“Act” means the National Housing Act.

2. Subsection 5(1) of the Regulations is amended by striking out “and” at the end of paragraph (i), by adding “and” at the end of paragraph (j) and by adding the following after paragraph (j):

3. (1)Section 6 of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(2) Section 6 of the Regulations is renumbered as subsection 6(1) and is amended by adding the following:

Exception

(2) The criterion set out in paragraph (1)(c) does not apply if at least 97% of the lender’s insured low ratio loans, other than those that are insured on an individual basis, fall under one of the situations referred to in that paragraph or are exempt from that criterion under subsection 8(3) or section 8.1.

4. Subsection 8(2) of the Regulations is replaced by the following:

Low ratio loans — October 15, 2008 to April 17, 2011

(2) The criterion set out in paragraph 6(1)(a) does not apply to a low ratio loan in respect of which the Corporation received a housing loan insurance application during the period beginning on October 15, 2008 and ending on April 17, 2011.

Low ratio loans — before January 1, 2016

(3) The criterion set out in paragraph 6(1)(c) does not apply to a low ratio loan that is not part of a pool of loans on the basis of which securities have been issued if the Corporation received a housing loan insurance application in respect of the loan — or in respect of the portfolio of loans to which the loan will belong for insurance purposes — before January 1, 2016, unless the application has been denied or the loan has ceased to be insured under insurance resulting from the application.

5. The Regulations are amended by adding the following after section 8:

TRANSITIONAL PROVISIONS

January 1, 2016 to December 31, 2017

8.1 (1)During the period beginning on January 1, 2016 and ending on December 31, 2017, the criteria set out in paragraphs 5(1)(k) and 6(1)(c) do not apply to a loan that is part of a pool of loans on the basis of which securities were issued before January 1, 2016 if the total amount of insured loans that are part of the pool does not exceed the total amount of all insured loans that were part of the pool on June 30, 2015.

January 1, 2018 to December 31, 2020

(2) During the period beginning on January 1, 2018 and ending on December 31, 2020, the criteria set out in paragraphs 5(1)(k) and 6(1)(c) do not apply to a loan that is part of a pool of loans on the basis of which securities were issued before January 1, 2016 if the total amount of all insured loans that are part of the pool does not exceed 50% of the total amount of all insured loans that were part of the pool on June 30, 2015.

COMING INTO FORCE

6. These Regulations come into force on January 1, 2016, but if they are published in the Canada Gazette, Part II, after that day, they come into force on the day on which they are published.

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