Major Strategic Shift for Home Capital Group
Posted on : 21-03-2010 | By : Philippe Rancourt | In : Home Capital Group
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Since its founding in 1986, Home Capital Group has concentrated in subrpime mortgages (or Alt-A in the mortgage jargon). These loans are granted to individuals not meeting banks criteria to obtain a mortgage. HCG has been able to succeed at the game through his niche expertise to assess the risk of this type of clientele, its traditional financing by issuing certificates of deposits and its conservative capital structure (high tier-1 capital ratio). In summary, HCG has long feasted from the crumbs that fell from the table of major Canadian banks.