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Canada’s housing chief denies evidence of widespread mortgage fraud

The head of Canada’s housing agency, whose responsibilities include maintaining the stability of the housing market, said on Thursday there was no evidence of widespread mortgage fraud in the industry.

“There is no evidence that fraud is a widespread problem within the industry but we know it happens. It’s very hard to find and incentives exist for frauding the system so we need to be vigilant,” said Evan Sinddall, the chief executive of Canada Mortgage and Housing Corp (CMHC).

CMHC is responsible for insuring the bulk of Canadian mortgages issued by banks and other large lenders.

The statement was made as Home Capital, one of Canada’s biggest mortgage lenders, is scaling back on lending to focus its attention on repairing its balance sheet following rapid deposit withdrawals. The company was accused of misleading investors about its mortgage business. The company denies the accusations.

Read more at Reuters

This article is summarized by Canadian Fraud News Inc.