The RBC ,CEO is concerned that people will simply flock to private lenders?
And what... the coffers will simply fly open? Private lenders are not stupid -  they don't loose.... Especially when the mortgage is uninsured. Unlike the big Banks that have simply been giving cheap money out for the last decade a lot of them insured on tax payer dime of course... 
This is just another scare tactic as the golden days are coming to end for all these financiers... 
My 2 cents...