OSFI issues guidance on capital treatment of reverse mortgages [Canada]
The Office of the Superintendent of Financial Institutions is issuing a draft advisory that sets out its view on the capital treatment of reverse mortgages.
OSFI notes that it has been asked to express a view on the capital treatment that would apply to reverse mortgages held by a federally regulated deposit taking institution.
“Reverse mortgages more closely resemble investments in real estate than they do residential mortgages as defined in the Basel Framework,” the regulator says.
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OSFI issues guidance on capital treatment of reverse mortgages [Canada]
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