http://autoinsurancereview.tk/wp-content/uploads/2016/05/1463421052_438_Fort-McMurray-fire-D-337x190.jpg
CMHC clarifies role in dealing with Fort Mac wildfire
Has insured about 8,400 loans worth $3.7 billion in Fort Mac area
Staff on May 16, 2016
The Canada Mortgage and Housing Corporation issued a statement today, clarifying its role in helping with the Fort McMurray disaster and the kind of options that lenders to help affected homeowners. Those options include deferral of mortgage payments for up to six months from May 1, re-amortization of the loan to result in lower payments and capitalization of outstanding interest arrears and other eligible expenses.
In its news release, the corporation pointed out that its mortgage loan insurance doesn’t cover force majeure. ”Lenders are required to maintain standard all-risk insurance to protect against loss or damage by fire to buildings and contents. CMHC’s potential loss is therefore limited to claims resulting from the indirect economic consequences of the event such as a decline in property value.”
CMHC has insured about 8,400 loans worth $3.7 billion in Fort McMurray and the surrounding area affected by the wildfires. It reports that it has approximately $3.1 billion of homeowner insurance-in-force in the Fort McMurray area, with about $0.2 billion of multi-unit residential insurance-in-force and $0.4 billion of portfolio insurance-in-force.
About 10 percent of loans are located in areas of serious fire damage or complete loss, 77 percent in areas with some damage and 13 percent in areas where the condition of the neighbourhood is to be determined.
CMHC clarifies role in dealing with Fort Mac wildfire
No comments:
Post a Comment