Strong and stable capital ratios Strategic focus and residential nonprime mortgage sector expertise Substantial market share in the niche, nonprime mortgage segment of the Canadian market Concentrated exposure to the riskier nonprime segment of the Canadian mortgage market makes the company particularly susceptible to further economic weakness High dependence on third-party channels, particularly the brokered channel for mortgage and deposit origination Apparent weaknesses in its risk management framework, as evidenced by recent fraudulent activity in broker-originated mortgages. Standard&Poor's Ratings Services' outlook on Home Capital Group Inc. is negative, reflecting our view that a weakening economy in Canada, Home Capital's heavy concentration in nonprime residential mortgages, and our reduced confidence in the company's risk management framework are weighing on
