FundamentalsIt's amazing how many claim to be experts of this industry. Just because "you interact" with finance people does not give you the right to label them all. There is not endless fraud through out this company. It's been stated by many that the asset base is strong and this fall has to do with its reputation being tarnished. The underwriting of these mortgages is overall very strong and falsified income on all these deals is a myth. A select group of brokers committed fraud and the company dealt with it. The disclosure to investors is what is in question. The loans themselves have performed well and their default ratio is half that of the major banks. If anything, look up "stated income" and see what the banks/mortgage insurers are doing.
There won't be a hot story like Marc Cohodes is saying. There is no immediate crash and fundamentals continue to support why the market is reacting the way it is. Until that changes there should be little panic. Home Capital Group will face some issues trying to find funding but, I'm pretty confident they'll find an alternative solution. If they can't, other lenders sklll take on their clients and someone will be interested in that book. It is not worthless.
I can appreciate that the market could be in a bubble. Two markets in Canada are out of control while the rest of the nation is on average okay. But, predicting a crash is waste of time. Looks up MacLean's, they've been predicting a crash for 10 years.