Canada Mortgage and Housing Corporation is mulling over the possibility of forcing banks to take on more of the risk – associated with home mortgage loans.

Speaking in Calgary, CMHC president and CEO Evan Siddall said the option is still on the table – to require lenders to pay a deductible on mortgage insurance claims.

Notes posted on the website of the federal housing agency show Siddall told his audience that the CMHC is working with a number of government entities – including the Department of Finance and the Bank of Canada – to look into ways of better distributing risk across the financial system.

The idea of having banks pay a deductible on mortgage insurance claims – was first floated by CMHC under the previous Conservative government.

Homebuyers who have less than a 20 per cent down payment – are required to obtain mortgage default insurance – from either CMHC or one of the private mortgage insurers.