TORONTO, July 6, 2017 /CNW/ - Equity Financial Holdings Inc.
(TSX: EQI) ("EQI" or the "Corporation"), which offers residential first mortgage loans through its wholly-owned subsidiary,
Equity Financial Trust Company ("Equity Trust"), provides initial comments on newly released Draft Guideline B-20 "Residential
Mortgage Underwriting Practices and Procedures" (the "Draft Guideline).
Equity Financial Holdings CEO Michael R. Jones said,
"Earlier today the Office of the Superintendent of Financial Institutions Canada (OSFI), released Draft Guideline B20 (setting
out changes to the original Guideline), describing their expectations for prudent residential mortgage underwriting by
federally-regulated financial institutions in Canada.
Changes proposed in the Draft Guideline could have a negative impact on our business volumes due to the nature of our customer
base. We are not currently in a position to exactly quantify the possible impact. We will continue to study and analyze the
content of the revised Draft Guideline, consult with advisors, other industry participants and OSFI, and will issue a further
update once the Draft Guideline is finalised, which is expected to occur in autumn 2017 following a comment period that ends in
mid-August."
Forward Looking Information
Certain portions of this press release as well as other public statements by the Corporation contain "forward-looking
information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking
statements", which may not be based on historical fact. Wherever possible, words such as "will", "plans," "expects," "targets,"
"continues", "estimates," "scheduled," "anticipates," "believes," "intends," "may," "could," "would" or might, and the negative
of such expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken,
occur or be achieved, have been used to identify forward-looking information. Such forward-looking statements include, without
limitation, the Corporation's expectations in respect of earnings, fee income, expense levels, future loans and originations,
repayment by borrowers, general economic, political and market factors in North America and
internationally, interest and foreign exchange rates, global equity and capital markets activities, the Corporation's expected
need for equity or debt financing, business competition, technological change, changes in government regulations and regulatory
guidelines, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation's ability to complete
strategic transactions and integrate acquisitions and other factors. Forward looking statements should not be read as guarantees
of future events, future performance or results, and will not necessarily be accurate indicators of the times at, or by which,
such events, performance or results will be achieved, if achieved at all.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business
conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest
rate and liquidity conditions affecting the Corporation and the Canadian economy, retail mortgage markets, housing sales and
capital markets. Certain material factors or assumptions are applied by the Corporation in making forward-looking statements,
including without limitation, factors and assumptions regarding interest rates, availability of key personnel, the effect of
competition, government regulation of its business, computer failure or security breaches, future capital requirements, its
ability to fund its mortgage business, the value of mortgage originations, the competitive nature of the alternative mortgage
market, the expected margin between the interest earned on its mortgage portfolio and the interest to be paid on its deposits,
the relative continued health of real estate markets, acceptance of its products in the marketplace, as well as its operating
cost structure and the current tax regime.
Forward-looking statements reflect the Corporation's current views with respect to future events and are subject to a
number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking
statements. Readers should not place undue reliance on such forward-looking statements, as they reflect the Corporation's current
views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business,
economic, regulatory, competitive, political and social uncertainties and contingencies. Many factors could cause the
Corporation's actual results, performance or achievements to be materially different from any future results, performance, or
achievements that may be expressed or implied by such forward-looking statements, including among others, a significant downturn
in capital markets or the economy as a whole, errors or omissions by the Corporation in providing services to its customers,
significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession,
pandemics, war and acts of terrorism which may adversely impact the North American and global economic and financial markets,
inability to raise funds through public or private financing significant changes in interest rates, failure by Equity Trust
to meet ongoing regulatory requirements, the failure of borrowers or counterparties to honour their financial or
contractual obligations to Equity Trust, failure by Equity Trust to adequately monitor and/or adjust its mortgage portfolio
management practices for changing circumstances, failure by the Corporation to attract and to retain the necessary employees to
meet its needs, failure by Equity Trust to adequately monitor the services provided by third party service providers or to
establish alternative arrangements if required, failure by Equity Trust to secure sufficient deposits from investment dealers or
deposit dealers or a sufficient level of mortgage origination from its mortgage broker network, a failure of the computer systems
of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation's quarterly
filings, annual information forms, annual reports and annual filings with securities regulators. The preceding list is not
exhaustive of possible factors. The Corporation disclaims any intent or obligation to update or revise publicly any
forward-looking statements whether as a result of new information, estimates, future events or results, or otherwise, unless
required to do so by applicable laws. The forward looking statements contained herein are expressly qualified in their entirety
by this cautionary statement.
About Equity Financial Holdings Inc.
The Corporation is a financial services company operating through its wholly-owned subsidiary, Equity Trust, a federally
regulated deposit-taking institution. Equity Trust serves the Canadian mortgage market by offering residential first mortgage
loans to non-prime and near-prime customers who do not meet the conventional underwriting standards of the major Canadian
banks. Learn more at www.equityfinancialtrust.com.
SOURCE Equity Financial Holdings Inc.
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