Loan Modification

It's not clear what problem Canada's chartered banks want the federal government to solve by toughening mortgage rules. But the Big Six are urging Ottawa to take measures, such as raising the minimum down payment and shortening the maximum amortization period, to avert a U.S.-style bubble and bust and the broader economic consequences that would bring about.

However, there is no bubble -- Canada Mortgage and Housing Corp., the Bank of Canada and the federal finance department all seem to agree -- and an ill-timed move to dampen the housing market could set back the economic recovery