ARCHIVED — Vol. 146, No. 24 — November 21, 2012
SI/2012-87 November 21, 2012
SUPPORTING VULNERABLE SENIORS AND STRENGTHENING CANADA’S ECONOMY ACT
Order Fixing January 1, 2013 as the Day on which Part 7, other than Sections 22 to 24, of the Act Comes into Force
P.C. 2012-1449 November 1, 2012
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 26 of the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act, chapter 15 of the Statutes of Canada, 2011, fixes January 1, 2013 as the day on which Part 7 of that Act comes into force, other than sections 22 to 24, which came into force on June 29, 2012 by virtue of section 359 of the Jobs, Growth and Long-term Prosperity Act, chapter 19 of the Statutes of Canada, 2012.
(This note is not part of the Order.)
That the Governor in Council fix January 1, 2013, as the day on which Part 7, other than sections 22 to 24, of the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act (the Act) comes into force.
To bring into force on January 1, 2013, Part 7, other than sections 22 to 24, of the Act in order to implement the legislative framework that formalizes existing mortgage insurance arrangements with private mortgage insurers and the Canada Mortgage and Housing Corporation (CMHC).
In Budget 2011, the Government committed to introducing a legislative framework that formalizes existing mortgage insurance arrangements with private mortgage insurers and CMHC. The legislative framework strengthens the Government’s oversight of the mortgage insurance industry and supports the efficient functioning of the housing finance market and the stability of the financial system. In addition, the framework is more transparent and improves accountability compared with the current contractual arrangement regime.
The framework received Royal Assent on June 26, 2011, as Part 7 of theAct. The following sections of the framework are brought into force with this Order:
- Section 20, enacting the Protection of Residential Mortgage or Hypothecary Insurance Act (PRMHIA), which outlines the mortgage insurance guarantee framework for private mortgage insurers;
- Section 21, repealing Part 9 of the Budget Implementation Act, 2006, which authorizes the pre-PRMHIA mortgage insurance arrangements; and
- Section 25, amending the Office of the Superintendent of Financial Institutions Act to provide the superintendent with the assessment powers over private insurers in order to recover its expenses related to the administration of certain provisions of the PRMHIA.
The framework also includes sections 22 to 24 of the Act, which amended the National Housing Act. These sections were brought into force by section 359 of the Jobs, Growth and Long-term Prosperity Act when that Act received Royal Assent on June 29, 2012.
The remaining sections of Part 7 were not brought into force at that time because the associated regulations were not yet finalized. Three Governor in Council regulations, the Protection of Residential Mortgage or Hypothecary Insurance Regulations, the Housing Loan (Insurance, Guarantee and Protection) Regulations,and the Regulations Amending the Assessment of Financial Institutions Regulations, 2001, formalize existing arrangements with the mortgage insurers.
The Protection of Residential Mortgage or Hypothecary Insurance Regulations and the Housing Loan (Insurance, Guarantee and Protection) Regulations come into force on the day on which section 20 of the Actcomes into force. The Regulations Amending the Assessment of Financial Institutions Regulations, 2001 come into force on the day on which section 25 of the Act comes into force.
The legislative framework formalizes the existing mortgage insurance arrangements with private mortgage insurers and CMHC, and does not require significant implementation on the part of the mortgage insurers.
Financial Institutions Division
Department of Finance
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