Making friends with EMILI

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Back in 1996, the Canadian Mortgage and Housing Corporation (CMHC) released EMILI, which was a revolutionary online mortgage loan insurance decision making platform. It is an automated underwriting process at CMHC for 1-4 unit residential properties that bring many benefits for Mortgage Professionals including faster CMHC assessments, reducing mortgage risk, processing reduced to seconds and wering expenses per transaction.

The factors EMILI uses in judgement consider the borrower, property, market and overall risk of each submission. EMILI’s main objective is to process the submissions for mortgage insurance for 1-4 unit residential properties.

Recently a mortgage ruling brought in changes affecting a decrease in the amortization period from 35 years to currently 25 years, along with the cap on refinancing at 80 percent, down from 85 percent.

There are talks about certain flaws within emili’s decision making process. Before emili was introduced, appraisers would have to go out to the purchasing property to determine the market value. Further there would be necessary renegotiating if the appraisal came in lower than expected or the deal could even potentially fall through. Thus some have felt that the buyer is unfairly represented.

If this concerns you as a first time home buyer you can raise these questions to an emili Professional at 1-888-GO Emili (1-888-463-6454) Monday to Friday from 6:30 a.m. to 11:00 p.m. (Eastern Time) and Saturdays from 8:30 a.m. to 7:00 p.m. (Eastern Time).

More information on emili: http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/moloin_009.cfm

For up-to-date Canadian Mortgage information we recommend: http://www.canadianmortgagetrends.com/

For all other inquiries or to find out how we can assist with your mortgage related questions, contact us today!