November 28, 2016 / 4:51 PM / 2 years ago

Canada watchdog says lenders face big losses if housing markets turn

VANCOUVER, Nov 28 (Reuters) - Canada’s banking regulator warned on Monday that lenders could face significant losses if housing markets turn and emphasized the need for stringent underwriting practices.

“Sound underwriting has always been important, but it has never been more important than it is now,” the Superintendent of Financial Institutions told a conference for mortgage professionals in Vancouver.

“Everyone involved in mortgage origination in Canada has a role to play in supporting the sound underwriting practices that OSFI requires of federally regulated lenders and mortgage insurers,” he added.

Reporting by Matt Scuffham, Editing by Franklin Paul

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