UPDATE 3-TD Bank says mortgage checks tightened in recent years
* CRO says income checks have been tightened up
* TD adjusted EPS C$1.27 vs average C$1.21 forecast
* CEO says continuing to look for U.S. acquisitions (Adds comments from executives on conference call)
By Matt Scuffham
TORONTO, Aug 25 (Reuters) - Toronto-Dominion Bank has made changes to its mortgage underwriting practices in recent years, its chief risk officer said on Thursday, potentially making it more resilient if house prices fall in Vancouver and Toronto.
Canada's banks are facing heightened scrutiny of their mortgage underwriting practices as authorities try to tackle the potential threat of a housing bubble in the two cities, where prices have soared.
The country's banking regulator last month raised concerns about mortgage underwriting standards across the industry, citing income verification checks as a concern.
Speaking to investors after the bank reported better-than-expected third-quarter results, TD's Chief Risk Officer Mark Chauvin said Canada's second-biggest lender had already tightened checks in response to price rises in recent years.
"There have been some changes. We put a lot more focus on income confirmation to ensure that the individual can service the mortgage that we provide, certainly at the time that we provide it," Chauvin said. Continued...