The Office of the Superintendent of Financial Institutions (OSFI) on Thursday unveiled a set of proposed changes to the rules on mortgage underwriting practices that would bring its regulations in line with OSFI’s heightened expectations in this area.

Among other things, the proposals would:

> mandate stress testing for all uninsured mortgages;

> require that loan-to-value (LTV) measurements adjust for local market conditions and risks and

> prohibit co-lending arrangements that are “designed, or appear to be designed to circumvent regulatory requirements.”

“The draft changes … released today are consistent with messages that OSFI has been delivering through public statements and in direct conversations with federally regulated financial institutions through our supervisory work,” says Carolyn Rogers, assistant superintendent, regulation sector, OSFI, in a statement.

The proposals are out for comment until Aug. 17.

OSFI says that it will finalize the rules, and set an effective date for the new measures, later this year.