Further the to CMHC announcement last week about insured mortgage criteria, Genworth confirms that it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements.

Shortly thereafter, Canada Guaranty also confirms that no changes to underwriting policy are contemplated as a result of recent industry announcements.

“Canada Guaranty utilizes a dynamic underwriting process where our underwriting policies are consistently updated to reflect evolving economic environments and emerging mortgage default patterns. This philosophy has resulted in the lowest loss ratio in the industry. Recent insurer announcements relating to down payment and minimum credit score represent a very small component of Canada Guaranty’s business, and we will continue to be prudent in these areas. Given implementation of the qualifying stress test and historic default patterns, Canada Guaranty does not anticipate borrower debt service ratios at time of origination to be a significant predictor of mortgage defaults.”

The competition is on. Let’s see if this translates to benefits to the consumer.