### Comment:
Can confirm. Work at an insolvency firm here and when someone files bankruptcy and a house is involved, CMHC can pay off the bank and take over the debt. Pretty sure this only happens if the house is surrendered in the bankruptcy though.

### REPLY:
Well, that's just a formula for CMHC falling down the same well that Fannie Mae did...  a decade later and we still haven't found the body.

### END.