HOME PRICES DON'T MATTER TO HCG'S BUSINESSFor the six millionth time, HCG is not a real estate developer. They don't need home prices to be sky high to be profitable.
A housing correction de-risks HCG's balance sheet over the medium/long run. HCG itself would want home prices to come down so their borrowers would get mortgages that they can afford.
Yes, in the short run, a housing correction would raise HCG's average LTV but it would be manageable given the average LTV of 60% and they will be refinanced with lower LTV when they mature.
Also, bundled loans do not raise the risk profile for HCG because they get first lien. If borrowers default, the second lien guys will get wiped out first before HCG gets hurt (if at all).
Don't listen to Tater78 and his short and distort tactics. Its obvious that his short trade is now underwater and he is still paying 15% interest from borrowing the stock to short. He is financially motivated to spread fear and lies in the market.