OSFI issues draft guideline supporting sound residential mortgage insurance underwriting

OTTAWA — April 14, 2014 — OSFI today released for consultation Draft Guideline B-21 Residential Mortgage Insurance Underwriting Practices and Procedures. The draft guideline sets out principles that promote and support sound residential mortgage insurance underwriting. It delivers on OSFI’s commitment to seek public consultation on a separate guideline applicable to mortgage insurers, which was made following publication of OSFI Guideline B-20 Residential Mortgage Underwriting Practices and Procedures in 2012.

Draft Guideline B-21 is based on findings from OSFI’s own internal reviews and international work undertaken by the Financial Stability Board and the Joint Forum. It provides clarity about best practices in respect of residential mortgage insurance underwriting, which contribute to a stable financial system. As such, it complements the Government of Canada’s mortgage insurance guarantee framework by focussing on mortgage insurers’ insurance underwriting governance, internal controls, and risk management.

“With Guidelines B-20 and B-21, once finalized, OSFI is making clear its expectations for both lenders and insurers operating in the housing market. The industry’s adherence to these principles will contribute to the continued stability of the market,” said Superintendent Julie Dickson.    

The consultation period is open until May 23, 2014. Once comments have been considered, a final guideline will be issued and an implementation date set.

A copy of Draft Guideline B-21 and other documents are available at:

Created in 1987 by an Act of Parliament, OSFI is the primary regulator and supervisor of federally regulated deposit-taking institutions, insurance companies, and federally regulated private pension plans. OSFI's mandate is to advance and administer a regulatory framework that contributes to public confidence in a strong, stable and competitive financial system.


Media Contact:
Brock Kruger
OSFI – Public Affairs