Pre construction condos markham . Canada’s largest real estate lender collapses?
Pre construction condos markham . Canada’s largest real estate lender collapses? Home Capital Group, Canada’s largest “alternative” mortgage lender, is not a bank.
And this has become part of its problem, because he can’t “create” money to lend. The agency initially had to get money by taking deposits and then lending through other channels. Use its subsidiary Home Trust, an institution that specializes in providing high-interest mortgages to risk lenders, who are often shut out of banks because of credit problems or unstable incomes that prevent them from getting mortgage insurance, including subprime lenders.
The situation for such mortgage lenders has become even more difficult since the disclosure of the fraudulent loan (liar loans) in 2015. Now it is facing a customer run. Home Capital Group, which was on the verge of bankruptcy last Thursday, received a $2 billion bailout loan, while the terms offered were harsh. The next day, on Friday, the difficulty of the deal emerged-the company had to use a large number of mortgages as collateral. This is a daunting challenge.
In this way, people will have a clearer idea of “how insiders view the value of mortgages and houses as collateral at the last minute.” The Canadian housing and mortgage markets felt bitterly cold for a moment.
This is when the whole system begins to collapse.
On July 15, 2015, Home Capital announced that the total amount of high-interest uninsured mortgage loans had plummeted by 16%, while the total amount of lower-interest insured mortgages fell by 55%. In addition, the company has laid off some unprofessional brokers. The company’s share price plummeted 25% in two days.
Fraudulent loans were exposed on July 30, 2015, at the request of the Ontario Securities Commission, when the results of a secret investigation into “falsified income information” conducted since September 2014 were released. As a result, 45 mortgage brokers were halted, and they handled nearly C $1 billion of home mortgages in 2014, equivalent to 12.5 per cent of total mortgages in Canada.