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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
Comment by Djwburron May 12, 2017 2:24am
84 Views
Post# 26235448

RE:RE:RE:RE:RE:RE:RE:RE:"Going Concern" warnings are reg. requirements..Nothing new

RE:RE:RE:RE:RE:RE:RE:RE:"Going Concern" warnings are reg. requirements..Nothing new The plan for HCG is not to sell the company the way most retailers are hoping. You must realize that perhaps their NPL's are low, however, these mortgages are subprime and many carry unknown risks over the long term based on the shady lending standards from the past. The point here is when the economy starts to dip into recession and job losses increase, who wants to carry these high risk loans and which buyer will offer 100% of the asset value knowing the risks going forward? Nobody will be offering HCG a buyout. Instead they will try to make a reasonable effort to save the company. The unfortunate thing is that their name is tarnished and I doubt they recover from this. Time will show who is on the right side of the trade. I do know I have heard stories of people receiving mortgages from subprime lenders and it's astonishing what these guys are approving. It will be interesting to see how everything works out but in the end a lot of people are going to lose money here.
Bullboard Posts