Home Capital Group Inc HMCBF

Primary Symbol: T.HCG

Home Capital Group Inc. is a Canada-based holding company that operates through its principal subsidiary, Home Trust Company (Home Trust). Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank offer deposits through brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Its mortgage lending includes classic single-family residential lending, insured residential lending, residential commercial lending, and non-residential commercial lending. Its consumer lending loan portfolio comprises credit cards, lines of credit and other consumer retail loans. In addition, the Company manages a treasury portfolio to support liquidity requirements and invest excess capital.

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Home Capital Group Inc

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Comment by WBuffett1on Nov 15, 2017 9:47am

26 Views

Post# 26966994

RE:RE:Q3 Results Quick Highlights

WBuffett1 wrote:

WBuffett1 wrote: Positives
- Returned to profitability
- Net income exceed street estimates
- loan book quality remains healthy with extremely low delinquency rates 0.28%!
- Average LTV of uninsured resi mortgage was 53.7%!
- Tier 1 capital of C$1.5 billion!
- Tier 1 capital ratio of 21.25%!
- and lots more

Negatives
- Low new mortgage originations (explained in the conference call that Home actually rejected over 70% of mortgage applications in the quarter as they now have new risk management process and in the process of retraining staffs and brokers to originate high quality Alt-A loans)
- nothing else

Summary
Home Capital will emerge to be an even better Home Capital with the support of Berkshire and high qualuty Alt-A loan portfolio. Essentially recession proof! Canada immigration policy is positive for Home Cap. i would argue B20 will actually be good for Home Capital as it creates another layer of barrier to entry.