# How does OSFI ensure FRFIs follow these guidelines?

> OSFI oversees FRFIs to ensure financial stability and compliance.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/how-does-osfi-ensure-frfis-follow-these-guidelines

## Answer
OSFI oversees FRFIs to ensure financial stability and compliance. Enhanced transparency and detailed documentation enable OSFI to assess a FRFI's financial health and the risks linked to its mortgage practices.

## Institutional highlights
- The government watches banks and lenders to make sure they're financially stable and following the rules.
- If a lender isn't managing mortgage risks well, the government can step in to fix the problem.
- Lenders need to keep records of their mortgage policies and share them with regulators when asked.
- Lenders must share details about their mortgages, like how many are insured, the payment schedules, and loan sizes.
- If a lender doesn't follow the rules, they might face closer supervision or need to hold more money in reserve.

## Related guide
- https://ratellow.com/guides/private-lending-mics-101

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0
- Disclosure requirements — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#3.1