Home Trust backed by influential player

Home Trust backed by influential player

Home Trust backed by influential player One industry head has voiced his company’s confidence in the embattled lender.

Dominion Lending Centres is confident Home Trust will bounce back and continue to provide competitive mortgage products to Canadians.

“Given the recent news that Home Capital Group will be implementing significant policy changes around their lending criteria, Dominion Lending Centres is proud to stand by Home Capital, and will resume recommending their mortgage solutions to our clients,” Gary Mauris, president of Dominion Lending Centres, said. “We are particularly pleased to see recent changes to the Board of Directors of Home Capital Group …
 
Dominion Lending Centres has full confidence that under new leadership, Home Capital Group will develop additional sources of funding and will continue serving Canadians with unique mortgage solutions.”

Dominion, however, was not always as confident in the channel lender.

“The developments of the past month around Home Capital Group have been concerning, and as result, we had paused the recommendation of their mortgage solutions to our clients, in order to best protect our customers and their investments,” Mauris said.

However, with the recent leadership change, the country’s largest network has changed its tune.

Home Capital recently appointed a new group of directors following tumbling share prices and fleeing deposits which came as the result of an OSC accusation that the lender misled clients following the dismissal of brokers in 2015 who allegedly submitted fraudulent client documents.

For its part, Home Capital released an update on its deposits Thursday.

“Liquid assets stood at approximately $1.02 billion as of end of day May 10, 2017 and combined with the undrawn amount of $600 million under the Company’s $2.0 billion credit facility led by HOOPP, the Company’s aggregate available liquidity and credit capacity totaled approximately $1.62 billion,” the lender said in a release. “Home Trust’s High Interest Savings Account (HISA) deposit balances are expected to be approximately $128 million on May 11, 2017 after the settlement of transactions that took place on May 10, 2017.


Related stories:
Home Capital appoints new directors
Bond sales on hold until Home Capital crisis resolves itself
6 Comments
  • Frank T. 2017-05-12 9:44:07 AM
    Home Capital/Trust did this to themselves. Knowingly took bad deals from brokers, mislead investors. They only service top brokers...brokers sending less than $10M anually typically get poor service. I have zero empathy for Home Capital. The only reason I hope this gets cleared up soon is for the benefit of other good lenders in the same scope and for some of the good staff Home Capital has that doesn't deserve to weather this storm.
    Post a reply
  • Hensey Khan 2017-05-12 10:01:44 AM
    I still believe hometrust had better book of business than a lot of other lenders.
    Their situation is more related to a panic that has been created in the marketplace which will settle down.
    Post a reply
  • northwood mortgage 2017-05-12 11:12:24 AM
    after doing business with home trust for over 20 years and doing a 100 million dollars a year with them Northwood mortgage stand behind them 100%
    steve kates v.p.
    Post a reply