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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 Sep 05, 2017 2:47pm
50 Views
Post# 26657829

RE:RE:RE:HOME PRICES DON'T MATTER TO HCG'S BUSINESS

RE:RE:RE:HOME PRICES DON'T MATTER TO HCG'S BUSINESSQuick Math:

$750k house
30% down for 25 year @ 5% 2 year term
Balance after 2 years with home cap or equitable: $502,796

If prices fall 20%, resulting value is $600k

503/600 = 84%

After 2 yeras, go to the big banks and refinance with improved credit.  I can guarentee the banks will fiddle with reality and apprasials to get a mortgage without insurance (magically, the appraisal comes back at $650k!).  Worst Case, they get mortgage insurance or stay with home cap or equitable for another year or two.

I think that there is always risk with financial institutions, but the reality is far from a whole housing collapse.  You need unemployment to trigger that....  to me it seems that the economy is booming.
Bullboard Posts