TORONTO, Oct. 23 /CNW/ - Home Capital Group (TSX: HCG) announced that on October 21, 2009 the Office of the Superintendent of Financial Institutions ('OSFI') released a Draft Advisory on "Conversion to International Financial Reporting Standards (IFRSs) by Federally Regulated Entities (FREs)". This Draft Advisory addresses the regulatory implications of IFRS conversion on accounting and capital. In particular it contains provisions that would require that Home Trust Company ('Home') include its securitization activities entered into after December 31, 2009 under the Canada Mortgage Bond Program ('CMB') and the National Housing Act Mortgage Backed Security Program ('NHA MBS') within its regulatory asset to capital multiple ('ACM') limit. Previously, as off-balance sheet items under current accounting, CMB and NHA MBS securitizations were not part of the ACM.
Home has carefully analyzed the potential impact of this Draft Advisory as part of its ongoing IFRS conversion program. Home believes that the proposed rules will not materially impact our participation in the CMB and NHA MBS programs, nor affect our ability to continue offering competitive mortgage products which rely on these programs as a source of funding.
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 deposit, mortgage lending, retail credit and payment card services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.
SOURCE Home Capital Group Inc.
For further information: For further information: Gerald M. Soloway, CEO, or Nick Kyprianou, President, (416) 360-4663, www.homecapital.com