Author Topic: HCG.to - Home Capital Group  (Read 25780 times)

rb

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Re: HCG.to - Home Capital Group
« Reply #70 on: April 20, 2017, 01:33:55 PM »
They should be putback to hcg. Why should taxpayers cover this mess. Immediately they shouldnt have access to mortgage insurance given history and should not get cdic insurance for gic holders. I think this is a 0 EQB too.
Unfortunately CMHC insurance cannot put back to HCG. About a year ago OSFI was talking about passing a rule that would make that possible. But all the FIs fiercely opposed that. Shocker!

CDIC may be able to do something. But I don't think that the feds are very enthusiastic about taking out a sub-prime lender at this point. I agree that without CDIC this is an automatic zero.

wisdom

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Re: HCG.to - Home Capital Group
« Reply #71 on: April 20, 2017, 02:48:51 PM »
If I am not wrong CMHC can put back mortgages where fraud was committed. On the other real estate thread, I have argued that bank employees have been doing the same as one can see from recent articles.

The lenders have trained their customers on how to beat the weak controls in Camada.

The bank management's could be in for a surprise but they would have already collected their huge bonuses or retired by then.
« Last Edit: April 20, 2017, 02:51:25 PM by wisdom »

Liberty

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Re: HCG.to - Home Capital Group
« Reply #72 on: April 21, 2017, 06:10:28 AM »
Response from HCG, with pre-announcing their Q1:

http://www.homecapital.com/press_releases/2017/Pre-results%20Chair%20Letter%20final.pdf

Quote
Home Capital expects to report earnings of $0.90 on a diluted earnings per share basis, and $1.02 on an adjusted diluted earnings per share basis. This compares to $0.92 and $0.96 a year ago.

Letter doesn't really add much factually, basically just a "we know... but trust us" message.
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TBW

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Re: HCG.to - Home Capital Group
« Reply #73 on: April 21, 2017, 07:46:46 AM »
After reading the OSC letter it's hard for me to see what they can possibly 'vigorously' defend.  From the doc it seems like the OSC has some really strong evidence in terms of emails, internal memo's etc.  I guess they could argue immateriality of 10% of your mortgages having some fraud element to them...

I wonder if their defiance, in the face of strong evidence, results in harsher treatment from regulators?

TBW

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Re: HCG.to - Home Capital Group
« Reply #74 on: April 22, 2017, 09:44:56 AM »
http://www.theglobeandmail.com/report-on-business/chair-of-embattled-home-capital-confident-about-company-future/article34771194/

Uh oh.  It's official Scotia not offering HCG GIC's on their platform.  Too much reputational risk for these banks to offer their GIC's last bank offering will look terrible to their clients.  If other banks follow Scotia this company is done.

Liberty

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Re: HCG.to - Home Capital Group
« Reply #75 on: April 22, 2017, 11:11:22 AM »
http://www.theglobeandmail.com/report-on-business/chair-of-embattled-home-capital-confident-about-company-future/article34771194/

Uh oh.  It's official Scotia not offering HCG GIC's on their platform.  Too much reputational risk for these banks to offer their GIC's last bank offering will look terrible to their clients.  If other banks follow Scotia this company is done.

I'm reading that CIBC has also stopped offering their GICs, but haven't confirmed yet.
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TBW

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Re: HCG.to - Home Capital Group
« Reply #76 on: April 22, 2017, 01:39:03 PM »
If true, they are done as it will be just a matter of time till all 5 do the same.  No bank wants to be the last to allow people to buy their GIC's.

I wonder what the spillover effects will be.  Certainly EQB could see an effect.  Not sure who else.  Any ideas?

Liberty

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Re: HCG.to - Home Capital Group
« Reply #77 on: April 23, 2017, 04:32:19 PM »
Cranking GICs rates sign of financing crunch?

https://twitter.com/Keubiko/status/856244698075234304
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Uccmal

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Re: HCG.to - Home Capital Group
« Reply #78 on: April 23, 2017, 07:31:20 PM »
If true, they are done as it will be just a matter of time till all 5 do the same.  No bank wants to be the last to allow people to buy their GIC's.

I wonder what the spillover effects will be.  Certainly EQB could see an effect.  Not sure who else.  Any ideas?

This looks like it is starting to cascade.  I will be surprised if they aren't bankrupt pretty quickly.  If they cant securitize their mortgages, they cant keep the money flowing, and then cant pay their labour and/or broker channels.  Bad scene.  The collateral damage will be anyone who bought bonds that contain bad mortgages.  Small slice of what happened in the US.  Even if nearly all the mortgages perform HCG could still be toast just from a cash crunch.  Reputation is everything in the securitization business.  I have never shorted a stock, yet....
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clutch

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Re: HCG.to - Home Capital Group
« Reply #79 on: April 23, 2017, 07:39:06 PM »
So could HCG going under trigger bursting the bubble?