Their "concerns" are what normal people call minor housekeeping issues. The actual mortgages were performing fine. So, the OSC decided to burn down the house because the bathroom had a little bit of an odour.
Home Trust
- Thread starter SkyRider
- Start date
From my reading, timely disclosure is the issue they raised. When Hometrust eventually disclosed the problem with the brokers, their stock dropped 19%. That's all OSC needs to know to get interested; there was information withheld that materially impacted the stock price, and Hometrust did not disclose until months later.
The OSC is concerned about the operation of the stock market, including the all important market fairness. Who would have known about the issue in the months prior to the disclosure, and profited? Did executives mislead shareholders in that time? These are issues that the OSC deal with.
The actual strength of the bank will be monitored by OSFI.
Sure they are (sarcastic). They just about destroyed one company and the stocks of the "Big 6" banks all took a haircut. What the OSC did is the height of irresponsibility? Hope the OSC gets sued.
OSC = destroyer of wealth
Equitable bank just got a combined $2 billion line of credit from all the big banks. This shows confidence in their portfolio and practices.
Home Trust will go under and everything will continue as normal.
http://www.huffingtonpost.ca/2017/0...ne_n_16407186.html?ncid=fcbklnkcahpmg00000001
(The Huff Posts "bailout" headline is an example of sensational and poor journalism).
Home Trust will go under and everything will continue as normal.
http://www.huffingtonpost.ca/2017/0...ne_n_16407186.html?ncid=fcbklnkcahpmg00000001
(The Huff Posts "bailout" headline is an example of sensational and poor journalism).
This is a shame! Home Trust is a good mortgage option for borrowers and frequently has better terms / payout penalties than the 'big six'. They quickly and directly dealt with the issue of dishonest brokers who knowingly submitted false information to support applications. All this was public knowledge, punished by the market and well covered by the financial media. Investors / depositors were not mislead and the OSC has made a housekeeping (reporting) molehill into a business-killing mountain.
You hit the nail on the head. The OSC committed corporate murder.
I wonder if the Big 6 decided not to extend a line of credit to Home as a way to kill a competitor? Hence, Home had to turn to the Mafia to get financing.
https://www.google.ca/amp/s/sec.the...ng-slashed-again/article34892626/?service=amp
And rating agency DBRS cuts stock to CCC lowest available and debt to R5. One more nail in the coffin.
And rating agency DBRS cuts stock to CCC lowest available and debt to R5. One more nail in the coffin.
This is the same BS as in 2008. Who could have ever seen it coming ? The OSC is the same as the SEC in 2008. I spoke to a Real Estate friend of mine today. The firm he works for is averaging 108% over the asking price.
Who could have ever seen it coming ????
Who could have ever seen it coming ????
I called Premier Wynne's office and asked them to launch an investigation into how the OSC so badly fcuked up this file. Before the OSC got involved, Home was a healthy profitable company. Happy employees, shareholders, customers, depositors, OSFI, etc.
All this grief because OSC was not happy that a few mortgage application forms were not completed to 100% of OSC's perfection.
All this grief because OSC was not happy that a few mortgage application forms were not completed to 100% of OSC's perfection.
New Home rates effective today (May 16, 2017),
1 Year GIC – 2.35% (previously 2.10%)
18 Month GIC – 2.45% (previously 2.20%)
2 Year GIC – 2.55% (previously 2.30%)
3 Year GIC – 2.65% (previously 2.40%)
4 Year GIC – 2.75% (previously 2.50%)
5 Year GIC – 2.85% (previously 2.60%)
The 5 is enticing no need to worry if ur under cdic
1 Year GIC – 2.35% (previously 2.10%)
18 Month GIC – 2.45% (previously 2.20%)
2 Year GIC – 2.55% (previously 2.30%)
3 Year GIC – 2.65% (previously 2.40%)
4 Year GIC – 2.75% (previously 2.50%)
5 Year GIC – 2.85% (previously 2.60%)
The 5 is enticing no need to worry if ur under cdic
The situation seems to have stabilized for now but there's a lot of damage. The cause of this debacle is the OSC. They are like a bull in a china shop. One or two minor errors on a few mortgage applications (probably less than 1%) almost, and may yet, destroy a healthy profitable Ontario company. The OSC is a perfect example of an overstaffed and well financed government agency that needs to justify its existence by finding problems even when they don't exist.
The pathetic thing is, the mortgages in question were still performing and there were much better remedies for the situation. A small fine perhaps. The damage is really hugely out of proportion. Thankfully cooler heads have prevailed. I wonder why Hometrust does not up its savings account interest rates.....
Minor errors are totally different from turning a blind eye to not having the proper documentation in their files. Fraud is huge in the mortgage industry and if a loan goes bad and it turns out the mortgage lender did not perform proper due diligence, they are fully responsible for any losses. Home Trust is small compared to the big banks who can absorb mortgage losses as they have billions and billions of dollars in revenues and profits. From what I have heard, some mortgage brokers who were dealing with Home Trust were involved with providing fraudulent documentation and this is what has put the company at risk.
Credit risk is huge in the mortgage industry and the mortgage insurers are no longer just honoring claims so easily. They will turn down claims on mortgage defaults if the lender has not performed proper due diligence. Small errors will most likely be acceptable but outright fraud or misrepresentation by the lender will not. I have friends in the industry and they have told me many brokers have had their relationships cut off by mortgage lenders due to providing fraudulent documents. It doesn't make sense to risk losing millions of dollars for the small amount that lender makes doing mortgages.
Credit risk is huge in the mortgage industry and the mortgage insurers are no longer just honoring claims so easily. They will turn down claims on mortgage defaults if the lender has not performed proper due diligence. Small errors will most likely be acceptable but outright fraud or misrepresentation by the lender will not. I have friends in the industry and they have told me many brokers have had their relationships cut off by mortgage lenders due to providing fraudulent documents. It doesn't make sense to risk losing millions of dollars for the small amount that lender makes doing mortgages.
J
jazzbox
The bizarre thing is that CDIC covered 99% of those deposits but the rats still ran for the exits. CDIC was way too quiet about that.
Really disappointed that the CDIC, OSFI and our elected representatives said virtually nothing while "Rome burned".
Apparently, Bill Morneau said he didn't rule out a bailout and Bank of Canada governor said liquidity will be provided if needed, but these statements didn't make the headlines, if they were even said. Yes, the CDIC said nothing to calm the market.
It looks like Home has now bought some time (very expensive) for now. The OSC shitstorm will be settled. Maybe they'll banish Soloway to Siberia. So ridiculous.
Similar threads
