Effective use of deposit and mortgage insurance (CDIC and CMHC) Loan portfolio is primarily residential first mortgages Favorable efficiency ratio and asset quality Strong operating earnings, capital, and liquidity ratios Strong mortgage origination, underwriting and collection infrastructure Reduced competition in the Alt-A space as some lenders have withdrawn from the market No direct exposure to U.S. subprime or Canadian nonbank asset-backed commercial paper (ABCP) Limited business and geographic diversification; prone to weakness in the economy and housing markets Collateral lender in the Canadian residential Alt-A space Dependent on broker distribution channels for origination Gain on sale accounting distorts core revenues and net income Growth in commercial real estate book increasing single-name exposure The ratings on Toronto-based Home Capital Group Inc.
