The head of Canada Mortgage and Housing Corp. says it is beefing up its ability to detect mortgage fraud after being directed to do so by the federal government.
CMHC president and CEO Evan Siddall says there is no evidence of a widespread mortgage fraud problem.
But Siddall says there are incentives to commit fraud in the system and therefore the agency needs to be vigilant.
Siddall says CMHC's stepped up efforts were not triggered by recent events at mortgage lender Home Capital, which has been dealing with the aftermath of a scandal involving falsified loan applications.
There have been concerns that Canada's heated housing markets — namely those in Toronto and Vancouver — could have broader consequences on the national economy in the event of a recession.
Siddall says CMHC is looking at ways it can use data analytics to spot patterns that could be indicative of fraud networks or fraud rings.
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