A Family Affair At Home Capital Group: Did Re-Charge Just Open Pandora’s Box?
The Friendly Bear, 29 September 2016
We published a report on August 23rd exposing a peculiar relationship between Home Capital Group (OTCPK:HMCBF) (HCG.TO) and a previously undisclosed mortgage company called Re-Charge. In response to our report, Home Capital Group put out a press release making a series of claims that downplayed the significance of Re-Charge. Some of the main claims in the press release were as follows:
That “in the normal course of its business, HCG from time to time sells loans to third parties, when loans require work-outs or restructuring.” That “loans sold to all third parties since 2013 totaled less than $125 million” in the context of a “current on-balance sheet total loans portfolio of $18.1 billion.” That “Home Trust has not sold any loans requiring work-out or restructuring to any third party, including Re-Charge Corporation, since September 2015.”
