20:05:16 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Home Capital Group Inc
Symbol HCG
Shares Issued 80,246,349
Close 2018-09-14 C$ 15.08
Market Cap C$ 1,210,114,943
Recent Sedar Documents

Globe says Home Cap shows pitfalls of subprime lending

2018-09-17 09:18 ET - In the News

The Globe and Mail reports in its Saturday edition that last year's near-demise of alternative mortgage lender Home Capital Group highlighted the pitfalls of subprime lending and the perils of information hoarding by regulators. The Globe's Rita Trichur writes that back in 2015, two years before a funding crisis pushed Home Capital to the brink, the Office of the Superintendent of Financial Institutions staged an intervention at the lender's main operating subsidiary, Home Trust Co., because of problems with its anti-money-laundering controls and its risk-management practices. The fact that Home Trust was already on OSFI's naughty list, and had been on two other occasions since 2005, was not shared with other regulators, including the Ontario Securities Commission, which had launched a separate regulatory probe of Home Capital's disclosure of mortgage-documentation fraud. If OSFI and the OSC had better co-ordinated their supervision of Home Capital over the past 13 years, perhaps they could have nipped its problems in the bud and prevented its near-death spiral altogether. Lax underwriting of subprime loans was one of the main culprits of the global financial crisis. It cannot be allowed to happen here.

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