Home Capital Says Income Falsified on Loans, Cuts 45 Brokers
ByHome Capital Group Inc., targeted by short sellers as a potential hazard in Canada’s hot housing market, said it found falsified income information on some of its loans, prompting it to cut ties with 45 brokers.
The brokers originated C$960.4 million ($741.4 million) of Home Capital’s single-family residential mortgages, or 5.3 percent of its outstanding loan assets, in 2014, the company said in a statement Wednesday, without disclosing the amount of loans with false data. No evidence was found that credit scores or home values were falsified, the company said.
The disclosure, requested by the Ontario Securities Commission, was the result of an investigation began in late 2014 and was guided by an independent advisory firm. An external source had pointed to possible discrepancies in income verification submitted by some brokers, said Home Capital, Canada’s largest alternative-mortgage provider…
Home Capital Says Income Falsified on Loans, Cuts 45 Brokers
