Flaherty concerned by mortgage lending
Finance Minister Jim Flaherty said he shares the concern of Canada's top banking regulator that lenders are loosening their mortgage standards too much, but said any problems in the system are being corrected.
On Tuesday, documents released by Bloomberg showed signs that the Office of the Superintendent of Financial Institutions is concerned about the effect that loosening mortgage standards will have on the Canadian economy.
In this Globe and Mail article, it is reported that lenders are tending to hand out loans without sufficient income requirements. Banks are under scrutiny as reports reveal that loans are being administered with the mere promise of repayment.
Finance Minister Jim Flaherty shares this concern, but assures the public that these issues are being corrected.