TORONTO, Aug. 24, 2016 /CNW/ - Home Capital Group Inc. (TSX: HCG) and its federally regulated lending subsidiary, Home Trust Company ("Home Trust"), today provided a statement on loan sales practices following a recent report published on an investing web site.
Home Trust, in the normal course of its business, from time to time sells loans to third parties, when loans require work-outs or restructurings. All loans sold to third parties are accounted for, with any losses reflected in write-offs for the related period. Loans sold to all third parties since 2013 totaled less than $125 million, and was approximately $12 million in 2015 and $nil in 2016 on a current on-balance sheet total loans portfolio of $18.1 billion.
Home Trust calculates provisions for credit losses in accordance with applicable accounting requirements and incorporates any losses from loans sold to third parties into the historical data used to calculate the collective allowance.
Home Trust has not sold any loans requiring work-outs or restructurings to any third party, including Re-Charge Corporation, since September 2015.
The Governance, Nominating and Conduct Review Committee considered and agreed to recommend the appointment of William Walker to the board of Home Capital Group on November 4, 2015.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE Home Capital Group Inc.
For further information: Laura Lepore, Assistant Vice President, Investor Relations, 416-933-5652, email@example.com