Home Capital Group Inc. (TSE:HCG) made headlines as clients withdrew hundreds of millions in savings in a matter of days
CBC.ca | May 3, 2017: Canada’s housing market is always a hot topic, but this week it was a heretofore little-known mortgage lender called Home Capital Group Inc. (TSX: HCG) made headlines as clients withdrew hundreds of millions in savings in a matter of days.
Here’s everything you need to know about the unfolding story — and what, if anything, it could mean for the housing market as a whole.
What is Home Capital?
Home Capital is the parent company of a number of federally regulated financial institutions including Home Trust, Home Bank and Oaken Financial. While they compete in six provinces with big banks, credit unions and other companies for business, they target “segments of the Canadian financial services marketplace that are not the focus of the major financial institutions,” Home Capital says on its website.
While Home Capital offers a full complement of services including credit cards, GICs and savings accounts, it makes most of its money selling uninsured mortgages to clients who the big banks don’t cater to, usually because they have spotty credit histories, are self-employed or have otherwise uneven incomes.
[Editor’s Note: On February 10, 2017, the Company disclosed it had received an enforcement notice from staff of the Ontario Securities Commission (OSC) relating to the Company’s disclosure in 2015 regarding the impact of the Company’s findings that income information submitted on some loan applications had been falsified and the subsequent remedial steps taken by the Company, including the suspension of brokers and brokerages. Then, on April 19, staff of the OSC issued a statement of Allegations and a Notice of Hearing relating to that disclosure, against the Company and three current and former officers and directors of the Company.]
Read more at cbc.ca
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