While the US is experiencing a fiasco with healthcare insurers pulling out of states leaving some states with only 1 or zero insurers (and healthcare premiums skyrocketing in many states),
there is a fiasco north of the border as well with Alt-A mortgage lender Home Capital. Home Capital is seeking ADDITIONAL emergency funding as depositors flee the sinking ship. Home Capital has drawn an addition C$400 million on its loan, leaving only C$600 million available. As of May 8, deposit balances are expected to be approximately $192 million. According to the latest data, another 50% of deposits have exited Home Capital in the past week, and are now down over 90% since March 28.
TORONTO – May 8, 2017 – Home Capital Group Inc. (“The Company” TSX: HCG) today announced that it has drawn down a total of $1.4 billion from its $2 billion credit line, the termsof which were announced by the Company on April 27, 2017. HCG Liquidity Update May 8 2017
Home Capital added this line to their liquidity update: The Company’s existing mortgage portfolio continues to perform well.
That is, as long as the Canadian home price bubble doesn’t burst, eh?
Home Capital’s stock price is collapsing as depositors flee the scene.
And good ‘ol ANONYMOUS is leading the dumping of Home Capital shares.
Well, Toronto home prices are a bit “frothy” and not exactly “affordable.”
There you have it. Another fiasco courtesy of Central Planners.
Like the West Coast of the US and major east coast cities, Canadian home prices as Simply Unaffordable.