RE:RE:RE:RE:Lots of people got burnt catching this falling knifeTater78,
Since Home capital has a high turnover of mortgages (once people establish good credit, they move on to the big banks and better rates) we can assume those fraudulent mortgages have since turned over from when they happened pre 2015. They didn't appear to even have an impact on default rate. Therefore, it is reasonable to assume this short thesis is drying up.
Less revenues is ok. The price of the stock is pretty low to account for that.
The Q1 2017 average LTV for uninsured new mortgages in ontario was 71.6%. Higher than the aggregate, but still pretty low. It is entirely possible for those who put down the least (without insurance) to default first, however, defaulting has more to do with jobs and covering your mortgage than anything else. So a defualter would have to lose his/her job first which would be random. Therefore, I see defaulting randomly distributed and not based on your LTV.