TORONTO, July 31, 2015 /CNW/ - Home Capital Group Inc. (TSX: HCG) ("Home Capital" or the "Company") today wishes to clarify information provided in response to a question during the Company's second quarter conference call on July 30, 2015.
The Company answered in the affirmative to a question about whether Home Capital would consider a "very small portion" of the loans originated by the 45 suspended brokers to have falsified documentation. The Company wishes to clarify that based on the results of its testing of residential mortgage originations, it believes that loans originated using falsified income verification documentation represent an immaterial portion of Home Capital's overall mortgage portfolio.
Home Capital wishes to reiterate that it has been actively monitoring all active mortgages originated by the brokers in question and there have been no unusual credit issues. The Company continues to believe that it is unlikely that this matter will lead to significant credit losses. As stated on the conference call, the Company has also determined that the subject mortgages continue to perform in line with the Company's broader portfolio. Finally, Home Capital has done a broader test to ensure that income falsification was not a widespread issue in its portfolio and the Company is comfortable that it is not.
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. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to the Home Capital's 2014 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
SOURCE Home Capital Group Inc.
For further information: Gerald M. Soloway, CEO, or Martin Reid, President, 416-360-4663, www.homecapital.com