The Globe and Mail reports in its Thursday, April 19, edition that Home Capital Group has restated data on its residential home loan balances after detecting an error in a monthly filing with Canada's banking regulator.
The Globe's James Bradshaw writes that data for February initially made it appear that the balance of insured residential mortgages at subsidiary Home Trust Co. had increased by $1-billion, while its uninsured portfolio suffered a proportionate decline.
Home Capital discovered its mistake after fielding questions from analysts. The problem arose from a change to the internal process for reporting the figures and some mortgages were classified incorrectly. The revised figures show only minor changes in the balance of each portfolio, while the combined balance remains unchanged at $13.26-billion.
The restated February totals are much closer to the company's January filing, as reported to OSFI. Insured residential mortgage balances fell by about $89-million, while the balance of uninsured residential loans rose by $11-million.
Home Capital's slip-up comes as it continues to rebuild trust and restore its lending volumes after suffering a run on deposits and a liquidity crisis a year ago.
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