CMHC's approach to homeowner default management is to ensure that lenders have the necessary tools and authorities to make timely cost-effective decisions to assist their customers with temporary financial difficulties. This flexible approach allows lenders to respond to customers' needs quickly without having to consult with CMHC, submit cumbersome documentation, or to endure lengthy approval processes.
Of course, CMHC's highly trained default management staff are always available to assist lenders, and have the expertise to help lenders manage unusual or complex accounts. CMHC's default management staff are also available to respond to any lender training needs. With proper intervention and well-planned financial assistance, most problems that come to a lender's attention early can be remedied and the loyal long-term lender/client relationship can be maintained.
Default — Multi-Unit Properties
Investing in real estate is the ownership of real property to earn a financial return. Sometimes, entrepreneurs encounter problems, e.g. temporary high vacancies, the deterioration of the physical real estate, or the failure of the property to generate sufficient income to cover the cost of the necessary repairs. If the situation does not improve, the revenue stream from the project may decrease and become insufficient to support the necessary mortgage payments.
CMHC works with Approved Lenders to help preserve multi-unit properties in temporary financial difficulty. Where possible, CMHC will work with the Approved Lender and borrower to try to resolve the situation. This is generally done through a mortgage work out - an agreement between the Approved Lender and borrower to cure an actual or potential default on the mortgage. CMHC's experienced default management staff will review the Approved Lender prepared workout request, and support or enhance effective work-out solutions. Approved Lenders are often able to use CMHC approved loan workouts to help borrowers avoid serious default on multi-unit properties.
Default Management and Real Estate Centres
Contact one of CMHC's five Default Management and Real Estate Centres at the first signs of trouble for insured multi unit properties. Where possible, CMHC's expert staff will work with you to develop effective work-outs solutions that save time and money. The highly trained real estate staff in our regional centres are also there to support you in disposing of large multi unit properties and, when required, to assist you in transferring properties to CMHC.
Atlantic
Dean Durnford
(902) 426-7575
Quebec
Guy Riopel
(514) 283-7021
Ontario
Larry Doraty
(416) 218-3313
Prairie and Territories
TJ Lee
(403) 515-3009
British Columbia
Lorraine Verokosky
(604) 737-4164
Claims
CMHC also realizes that for some accounts, the efforts of the Approved Lender and the support of CMHC's default management staff, will not be successful in preventing a default. In these circumstances, CMHC is here to pay your claims.
For CMHC insured homeowner mortgage loans approved through emili, CMHC provides Approved Lenders with a 100% claims payment guarantee — if CMHC approves the loan through emili, CMHC will pay 100% of eligible costs. The one exception is in the case of fraud, where the lender, or their staff, is involved.
emiliCLAIMS, CMHC's web-based automated homeowner claims submission system is another example of CMHC's commitment to deliver innovative and efficient services to Canada's mortgage industry. emiliCLAIMS uses web technology to provide you with a fast, simple and effective way to submit homeowner claims - no more waiting at the fax machine to submit claims or printing and sending paper through the mail. By pre-populating information on the supplementary claim form there is no need for the Approved Lender to re-enter data, saving time and money, reducing errors, and making claims processing faster. emiliCLAIMS includes convenient features such as access to your claim inventory, option to cancel claims and the ability to send your comments directly to CMHC and uses both password access and encrypted electronic transmissions to ensure the safety of your data.
Training
CMHC's default management staff are available to respond to any lender training needs. Contact your Regional Manager, Business Development to make arrangements
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