Home Capital ramps up uninsured mortgage lending
He said the company is being cautious when considering loans that will go toward properties in Vancouver or downtown Toronto, because the markets are showing signs of overheating. The company would rather lend in a stable market, than one that is posting swings in either direction.
The company reported earnings Wednesday after the markets closed, saying adjusted profit rose to $45-million in the quarter. Impaired loans represented 0.29 per cent of all loans, down from 0.47 per cent a year ago.DING! The rising house prices are masking many many flaws in the economy and household balance sheets.
Chief executive officer Gerald Soloway said the lower delinquency rate is likely to due to a housing market that continues to perform well, after a period of softness through the recession. Homeowners who get into trouble are now selling on their own, instead of waiting for Home Capital to foreclose.
Hat tip: T.O. Bubble Boy at Greaterfool