No widespread mortgage fraud, says Canada's housing chief

Toronto

THE head of Canada's housing agency, whose responsibilities include maintaining the stability of the country's housing market, said there was no evidence of widespread fraud in Canada's mortgage industry.

Home Capital, one of Canada's biggest mortgage lenders, has scaled back on lending to focus on repairing its balance sheet following rapid deposit withdrawals after a management shake-up and accusations brought by a regional regulator that it had misled investors about its mortgage business. The company has said the accusations are without merit.