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 icecubeon Aug 29, 2016 11:40am

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Post# 25186981

RE:RE:Vancouver Housing Bubble Bursts Spectacularly

baranja wrote:

CIBC just said they can survive 30% drop in prices,..

What they (CIBC's chief risk officer Laura Dottori-Attanasio) stated was, "A steep drop in home prices of 30 per cent and a spike in unemployment to 11 per cent across the country would cost Canadian Imperial Bank of Commerce less than $100-million in mortgage losses, according to the banks stress tests." (Emphasis added.)]

In other words, it would take the combination of lower real estate prices in conjunction with sky rocketing unemployment across Canada (not only in Vancouver and Toronto) to result in losses.

Dottori-Attanasio further said that the bank continues to view the residential mortgage book to be a very good product and is not concerned about markets such as Vancouver and Toronto where home prices have been rising rapidly.

When we look at our greater Toronto and Vancouver markets, we have better [credit] scores than the national average, lower at origination loan to values, our serious arrear rates are much lower than our overall portfolio, and so the credit quality is very high in these particular segments, she said.