Canada Mortgage and Housing Corp. (CMHC) is considering calling in the Canada Revenue Agency (CRA) to battle an increase in mortgage fraud.
The campaign is either overkill or inevitable, according to mortgage industry sources.
The focus of the oversight is income verification of mortgage applicants, which the federal housing agency fears is a growing problem.
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According to a CMHC statement, “the industry’s current detection tools have not kept pace with the increasing sophistication of the threat we face.”
In an emailed response to Business in Vancouver, CMHC stated “there is no timeline in place for the co-operation with Canada Revenue Agency on income verification,” but industry sources expect it could roll out as early as October 1.
CMHC is Canada’s largest mortgage insurer. In the first half of this year, it insured 107,000 homes.