Home Capital Group Inc T.HCG

MD&A Table 18b

[Northforce13]

Has anyone else read and thought about the MD&A table 18b that shows mortgage deferral requests went from 272 mil end of March 30th to 3.9 billion by the end of April?

[canader]

Hmmmm, I expect that a good chunk of those deferrals will be from those who are able to pay but took the deferral path as a cautionary move. Living in Vancouver I have seen little, Like no evidence that people are putting homes up for sale. The only thing I have noticed is a derth of "for sale" signs You are not seeing the forest for the trees. Don't jump in like a mad man

[Northforce13]

Eh, I don't think I'll be buying any dividend paying ETFs with the economy imploding all around us

[canader]

Fed to start buying ETFs Tuesday. I'm good. https://www.forexlive.com/centralbank/!/federal-reserve-says-secondary-market-facility-to-start-buying-etfs-on-tuesday-20200512

[EventHorizon]

I just read through MD&A reports for both HCG (https://s2.q4cdn.com/668293721/files/doc_financials/2020/q1/HCG-Q1-2020-Quarterly-Report.pdf) and EQB (https://eqbank.investorroom.com/download/EGI+MDA+and+FS+Q1+2020+SEDAR.pdf). I am guessing that HCG is being extra cautious and perhaps is being too pesiministic with their Stage 1 and Stage 2 disclosure. EQB has emphasized their provisions (ie

[MrSilbergIeit]

I've also studied both and I agree HCG is definitely being more cautious than EQB in provisioning Also agree we don't need to worry too much about deferrals on residential mortgages. HCG said they granted deferral for pretty much everyone that asked for it.  Many applied for deferral out of an abundance of caution. A lot of my friends applied for deferral while still being employed

[EventHorizon]

Thank you for the correction. Nonetheless, I still think the commercial portfolios might come and haunt the banks. In my understanding the commercial loans included loans for example for facility equipment and leashold improvements (like the kitchen or furnishings in a restaurant for e.g.) which might be secured by the equipment in the rented location (but NOT the real estate since it is not owned

[MrSilbergIeit]

Commercial loans are all mortgages backed by the real estate properties. They don't make equipment loans like EQB. They do have a legacy portfolio for HVAC related loans that is under "Other consumer retail loans". This is the portfolio that they are heavily provisioning. They are no longer making these loans and are now winding down this portfolio.