TORONTO, Aug. 24, 2016 /CNW/ - Home Capital Group Inc.
(TSX: HCG) and its federally regulated lending subsidiary, Home
Trust Company ("Home Trust"), today provided a statement on loan
sales practices following a recent report published on an investing
web site.
Home Trust, in the normal course of its business, from time to
time sells loans to third parties, when loans require work-outs or
restructurings. All loans sold to third parties are accounted for,
with any losses reflected in write-offs for the related period.
Loans sold to all third parties since 2013 totaled less than
$125 million, and was approximately
$12 million in 2015 and $nil in
2016 on a current on-balance sheet total loans portfolio of
$18.1 billion.
Home Trust calculates provisions for credit losses in accordance
with applicable accounting requirements and incorporates any losses
from loans sold to third parties into the historical data used to
calculate the collective allowance.
Home Trust has not sold any loans requiring work-outs or
restructurings to any third party, including Re-Charge Corporation,
since September 2015.
The Governance, Nominating and Conduct Review Committee
considered and agreed to recommend the appointment of William Walker to the board of Home Capital
Group on November 4, 2015.
Home Capital Group Inc. is a public company, traded on the
Toronto Stock Exchange (HCG), operating through its principal
subsidiary, Home Trust Company. Home Trust is a federally regulated
trust company offering residential and non-residential mortgage
lending, securitization of insured residential first mortgage
products, consumer lending and credit card services. In addition,
Home Trust offers deposits via brokers and financial planners, and
through its direct to consumer deposit brand, Oaken Financial. Home
Trust also conducts business through its wholly owned subsidiary,
Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
SOURCE Home Capital Group Inc.