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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.


TSX:HCG - Post by User

Bullboard Posts
Comment by WayneH5565on Jul 24, 2017 1:35pm
60 Views
Post# 26502036

RE:RE:RE:RE:Lots of people got burnt catching this falling knife

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.
Bullboard Posts