one of mortgage leaders just imploded
May 2, 2017
One of Canada’s largest mortgage lenders just imploded, and it may have serious consequences for Toronto real estate.
Home Capital Group, a publicly traded company that engages in non-prime (a.k.a. subprime) lending, saw its stock drop over 60% in a single day.
The reason? They’re facing a liquidity crunch, as their capital for subprime mortgages dried up very quickly.
This could be the start of a broader trend of investors derisking, and it may kill a significant segment of high-leverage buyers.
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