RE:RE:RE:RE:RE:No sanctions for 43 out of 45 HCG brokersexcept the fact that these mortgages are two to three years old. Its ancient news.
if there were deleterious effects, it would have shown up by now.
Why are their loan rates so low, even Genworth and CMHC are publicly stating the the Home Cap mortgage default rates are lower than other banks.
the point is that the OSC has come after them two years after the fact. and it will come down so an esoteric argument about what is defined as material and when did they know it was material.
I am sure HGC will have consulted with their auditors about disclosure and their lawyers and it will be a debate - it will not be a crystal clear argument either,
Meanwhile the company remained profitable up to the point of the OSC hearing announcement and the only real damage done to investors is by the OSC itself.
Whatever insufficient or tardy reporting- becasuse everything was disclosed, just at a period later than what the oSC thought was timely, has had little effect on the profitablity of the company. Which kind of makes the HGC argument for them.
But now the shorts and the OSC have caused a liquidity crisis as depositors are fearful for their money. It does look like the worst is over.
Stock is worth more than $ 9. The company will be less profitable because they will have higher interest costs this year and won't be writing as many mortgages- perhaps 10 % less but still should be generating decent profits once they replace the HOOP loan.
the shorts and naysayers are wrong