In what was Gerald Soloway’s last conference call as the CEO of Home Capital, the channel lender announced one of its best first quarters to date.
Mortgage originations in the first quarter exceeded the mark set in 2015 by 29% as well as the previous best set in in 2014 by 7%.
“[It was] a very good start to the year,” Soloway, who will retire on May 11, told investors. “We achieved this be redoubling our efforts in customer services.”
Soloway also credited the work brokers have done with helping Home achieve its results last quarter.
Total originations in Q1 2016 were $1.78 billion. Home reported traditional, uninsured total residential mortgage originations of $1.06 billion. That was up from $961.3 million in Q1 2015.
However, the lender isn’t setting its sights on beating 2015’s totals.
“We don’t look at 2015 as the year to beat, but 2014 … the year we had record originations,” President Martin Reid, who is set to succeed Soloway as CEO, said during the call.
Thoughts on the housing market
“We expect supply and demand (in established markets) will remain stable,” Reid said. “It’s a tale of two cities with Toronto and Vancouver showing unsustainable strength.”
Home doesn’t foresee continued double-digit increases in those two hot markets. It’s also fairly confident in Alberta’s market.
“We don’t see major crisis in Alberta; overall we see a healthy market,” Reid said.
Home Capital is currently working on eliminating redundancies between itself and CFF Bank.
“Integration is going according to plan, but we are still running some systems side-by-side and that’s adding costs,” Reid said.
Home said increased regulation has created a whole new class of clients – those with strong credit who don’t necessarily qualify for A-deals. It has created Ace Plus to service this market.
It’s one of the channel’s largest lenders and it has its sights set on breaking a company origination record – with the help of brokers.