The CRA has shared highlights from its industry consultation on the government's new Income Verification Tool.
It promises to use the broker and lender feedback it received to "inform" its design of the tool, citing two stats as reasons to complete this project:
- Mortgage Professionals Canada warns that “for every $1 lost to fraud it takes $4 for lenders to recoup.”
- "The foreclosure process on a property where the borrower is unable to make their payments can take up to a year, and cost approximately 20% to 30% of the property’s value," it says.
The agency declined to ballpark when the tool might come to fruition—classic government strategy: if you don’t give a timeline, you can’t miss it.
Findings from the report
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