Home Capital says loan investigation to continue through 2016

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(Bloomberg) -- Home Capital Group Inc., Canada’s largest alternative-mortgage provider, said an investigation into loans with faulty income information is set to continue through most of next year.

The Toronto-based firm, which cut ties with 45 brokers earlier this year after finding falsified borrower income information, said it’s about a quarter of the way through its review of those loans and will be finished by late 2016, it said in an earnings report Wednesday.

Of the mortgages reviewed, more than 90 percent could be eligible for renewal, Home Capital said. The total value of outstanding mortgages from those brokers fell to C$1.72 billion ($1.31 billion) as of Sept. 30 from C$1.93 billion at the end of June. In July, Home Capital said that the brokers originated C$960.4 million of single-family mortgages in 2014.

The company also named William J. Walker to its board of directors. Walker is a partner at Gowling Lafleur Henderson LLP and has more than 30 years of experience in banking law and dealing with regulators, Home Capital said.
  • steve kates v.p. on 2015-11-05 9:17:12 AM

    home trust is a great company to deal with Northwood mortgage has been one of their top brokers for many years .if I find one of my agents falsifying document they would no longer work for us

  • Walter Scott on 2015-11-08 5:59:39 PM

    Why they are cutting off 45 brokers? The borrowers are supplying income documents and broker just passing it to the lender....

  • Ron Butler on 2015-11-10 9:38:40 AM

    Walter that is a very silly remark. Somehow ALL of these broker's clients send phoney docs, hundreds and hundreds of them? What remarkable coincidence. If you believe that I have bridge in New York that might be available for sale.

  • Ann Todd on 2015-11-10 2:11:28 PM

    Walter, a broker's role is to do their best for their clients while protecting their lender partners. We're not simply paper pushers taking whatever clients provide and submitting the paperwork to lenders. If this is all you do, expect to have a lot of issues on files and you will be cut off sooner or later. Due diligence is required on every file. There are numerous ways you as a broker should be screening clients to ensure the information they provide to you is accurate.

  • Michael on 2015-11-11 8:35:28 AM

    Something smells fishy about this whole matter. Home Capital is a non prime lender so required docs are lose to begin with. 1.72 billion is a big spread to have your eyes open to the matter. Not to mention home capital senior management has a tight grip on all deals

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