Monday, October 30, 2006 - Business - Letter reveals friction at CMHC

Higher House prices? PR - Business - Letter reveals friction at CMHC: "Letter reveals friction at CMHCSharp reprimand from bank governor

OTTAWA -- A tart letter of reprimand from the governor of the Bank of Canada suggests there have been rocky relations between the bank and the embattled Canada Mortgage and Housing Corp.
The newly released letter from David Dodge to Karen Kinsley, president and CEO of the housing corporation, uses unusually strong language to criticize new lending policies announced by the federal corporation over the summer.
'I read with interest and dismay your press release of June 28 which indicated that CMHC would offer mortgage insurance for interest-only loans and for amortizations of up to 35 years,' says the two-page letter. "