# FRFI Due Diligence: Evaluating Mortgage Insurer Risk Profile

> FRFIs are permitted to procure mortgage insurance from CMHC and private insurers.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/frfi-due-diligence-evaluating-mortgage-insurer-risk-profile

## Answer
FRFIs are permitted to procure mortgage insurance from CMHC and private insurers. OSFI mandates comprehensive due diligence proportionate to the FRFI's exposure. This assessment must consider:

## Related guide
- https://ratellow.com/guides/mortgage-insurance-life-disability

## Sources
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits