Home Capital Group is the Canadian holding company. Through its subsidiary Home Trust Company , the company provides a variety of credit products including mortgages, credit cards and deposit services from Canada. It is regulated under federal law. The Home Trust operates primarily in areas deemed to be low risk where above average returns can be achieved; it also tends to focus on areas that are ignored by other mortgage lenders. During the 2008 economic crisis, it faced less competition (the number of competitors halved over the past few years) and its unique customer base (more represented by people with credit problems). The mortgaged property is residential and non-residential and includes apartments and office buildings, hotels, construction and industrial complexes (retail mortgage lending which is also one of the main sources of organic growth, is the core of the company's business). Most consumer lending businesses are done under the PSiGate banner (including credit cards).
In 2009, its shares outperformed eight major competitors in the uninsured mortgage market.
In 2010, it enhanced the technology used in data/information transfer, which increased the speed and efficiency of the entire transaction. When the Canadian government adds restrictions to mortgage lending, concerns arise about new disruptions to the Canadian housing market. Home Capital considers it to be beneficial to overall market stability.
On November 25, 2013, the Home Trust launched Oaken Financial to provide financial services directly to consumers over the Internet.
On November 10, 2014, the Home Trust announced that it intends to apply to the Minister of Finance to charter a subsidiary of Bank Schedule I to be called the Home Trust Bank in English ("Banque Home Trust" in French ).
In July 2015, Home Capital Group suspended 45 brokers to create mortgages with false income information, the estimated mortgage value of brokers suspended on Home Capital books is $ 1.5-2 billion.
In March 2017, President and CEO Martin Reid was fired by the company. This happened two weeks after some of the current and former officials and directors had received enforcement notices from the Ontario Securities Commission related to the company's disclosure practices in the past and, in some cases, the stock trading.
On June 22, 2017, it was announced that the company run by renowned investor Warren Buffett would make a $ 400 million equity investment at Home Capital Group. In addition, Buffett's subsidiary Berkshire Hathaway will extend a $ 2 billion credit line to the company. Home Capital Group shares closed the day with a 27% gain after news of Buffett's investment.
Video Home Capital Group
History
Home Capital Group was established in 1977 as Sonor Resources Corp. Become Home Capital Group Inc. in 1986. During fiscal year 2009, its workforce grew 24.3% (from 395 to 491).
Maps Home Capital Group
Business
Products include short term deposits, investment certificates, retirement/income fund savings plans, Tax Free Savings Accounts, and government secured mortgage securities. Consumer loans provide business and individual services for credit cards (including those paid in full) and other loans. Since the goals are uninsured and those with financing problems (rejected by major retail banks), people without much credit or past credit problems make up the lion's share of the client base.
Home Capital only operates in Canada where it holds the largest market share in the uninsured mortgage market. The company grew rapidly during the decade ahead of 2011. Assets, annual revenue and revenue growth are consistent (not decreasing during the fiscal period). Despite traditionally serving an uninsured mortgage market, insuring mortgage represents the fastest growing business segment. Assets under administration represent 36.9% of total assets when combined with aum: total assets increased 36.6% in 2009 and 8.4% between December 2009 and September 2010. During the first three quarters of 2010 mortgage housing reached $ 4, 74 billion with a traditional single family mortgage that makes up 64.5% of total interest income ($ 170.156 from $ 263.775 million). Net interest income ($ 150.15 million) represents 38.6% of total revenue ($ 389.1 million, 9M10). Total arrears of $ 71.3 million (2Q09). In terms of assets, securities represent 10.49% of them approximately double personal loans and credit cards. Residential housing generated 49.4% of all loans ($ 4.7 billion in September 2010).
OSC Accusations
On April 19, 2017, Ontario Security Commission accused Home Capital of making "material misleading statements" to investors. None of these allegations is proven.
Division and subsidiary
During the first nine months of 2010, the new insured mortgage amounted to $ 2.08 billion (twice that of the corresponding 2009 period) while the uninsured grew from $ 728.6 million to $ 2.17 billion.
- Psigate - Provide business/merchants the ability to conduct business online by providing them with electronic payment support. Canadians are offered electronic payment services (Visa, MasterCard, American Express and Interac credit cards). It started in 1988 and is 100% owned by Home Capital Group.
- Accelerator Program - provides mortgage guarantees it sells through the Canadian Mortgage Bond program and mortgage-backed securities.
- Oaken Financial - Online financial services for individuals.
References
Source of the article : Wikipedia
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