That seems to be the case, but taxpayers are still on the hook as the backstop to the CDIC.  If the Royal Bank's mortgages go sour, maybe because we actually limit foreign buyers (say), then with much of their book insured by CMHC, taxpayers pay when CMHC goes bust, just like Fannie and Freddie did in the States.  IF that money was not enough to cover the losses, then CDIC also would be there next.  When Home Capital goes down, it just looks a bit different - no CMHC payout, but CDIC has to step in, at least to the tune of ensuring $100k per account.  Taxpayers get hosed either way, but I could happily live with that if it meant the end of this bizarre bubble!