FP article on Home Capital's Mortgage Brokers https://business.financialpost.com/news/fp-street/in-home-capitals-mortgage-mess-blame-the-unlucky-brokers
good article on the mortgage brokers- and the instance of fraud in the marketplace and how it relates to HCG.
It does point out again the default rates at HCG are lower than the CHMC average:
Genworth MI Canada Inc., Canada’s second-largest mortgage insurer, after CMHC, said in April that Home Capital-originated loans make up only 1 per cent of its business and the delinquency rate on those loans was below 0.2 per cent as of March 31. Canadian lenders have an average arrears rate of 0.28 per cent as of February, according to the Canadian Bankers Association.
the short's case is again overstated-
there is not higher rates of default at HCG-
real estate market is not crashing
Canada RE market is not the same as the USA in 2008 for a host of reasons.
it should be noted that HCG did boost their loan loss provisions in the last quarter- and still had a good quarter of profit - this quarter will obviously not be so rosy-