Guideline B-20

Residential Mortgage Underwriting Practices and Procedures (the Guideline) sets out the expectations of
the Office of the Superintendent of Financial Institutions Canada (OSFI) for prudent residential mortgage
underwriting, and is applicable to all federally-regulated financial institutions (FRFIs) that are engaged in
residential mortgage underwriting and/or the acquisition of residential mortgage loan assets in Canada.
The Guideline does not apply retroactively to residential mortgages already in place. OSFI’s expectation
is that the FRFIs are to be in full compliance with the Guideline by the end of the 2012 fiscal year and
OSFI has indicated that, where possible, FRFIs should comply with the principles and expectations set
out in the Guideline as of June 21, 2012.

The Guideline covers any loan to an individual that is secured by a residential property (i.e., one to four
unit dwellings), home equity lines of credit (HELOCs), home equity loans and other such products that
use residential property as security.

The Guideline sets out five fundamental

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