Home Capital Buys Time With Pension Loan as Deposits ErodeBy
Canada mortgage lender gets $1.5 billion loan from HOOPP
Company considers sale as fallout spreads to other lenders
Home Capital Group Inc.’s C$2 billion ($1.5 billion) credit line from a Canadian pension fund buys it some time as the country’s biggest alternative mortgage lender faces a run on deposits that may spark a sale of the company.
Healthcare of Ontario Pension Plan agreed to provide the one-year loan to offset the withdrawals sparked by allegations from regulators that the company misled investors about mortgage applications. Customers withdrew another C$290 million from its high-interest savings accounts Thursday, adding to the C$472 million pulled out the previous day, the company said in a statement. Balances have plunged more than 70 percent in a month. The company also has C$13 billion in guaranteed investment certificates…
Leave a Reply
You must be logged in to post a comment.