Mortgage insurance is compulsory for federally regulated financial institutions when the loan-to-value ratio is over 80 per cent. Further, mortgage insurance providers tend to set the lending standards for the industry as a whole.
Today’s challenges call for a macroprudential policy which is alert and capable. 6  Conclusion  Let me conclude with a very brief outlook. At the current stage, good macroprudential regulation is more about basics such as defining properly the objective, compiling the efficient toolkit and setting up the competent institutions. One day, this part of the job will be done.