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Home Capital Group Inc 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.


TSX:HCG - Post by User

Bullboard Posts
Post by radar03on Jan 27, 2006 8:46am
194 Views
Post# 10248707

consider this....

consider this....Rate increases squeeze the home owner's (already extended) credit limit, causing more clients to seek HCG type financing. If the rate of new clients exceeds the default rate do they not have a recipe for higher profits? Conversely prime mortgages at other lending instutions deminish client base as rates increase. Once asked whether increases in interest rates would harm the bottom line, Gerald Solloway in a conferance call laughed and stated that would not affect profits negatively. Was he thinking the above? After all HCG default rates are lower than others in the prime market. Realizing perception is reality wrt rate increases and SP,I believe there is no reason to sell in this atmosphere of rising rates. JMO R
Bullboard Posts