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 Well-established mortgage origination, underwriting, and collection infrastructure Limited business and geographic diversification Exposure to Canadian residential non-prime/Alt-A mortgages Dependence on third-party channels for origination of both deposits and mortgages Single-name concentration within commercial mortgage book Gain on sale accounting distorts core revenues and net income The ratings on Toronto-based Home Capital Group Inc. (Home Capital; TSX: HCG) and Home Trust Co. (Home Trust), a federally regulated trust company and a member of the Canadian Deposit Insurance Corp. (CDIC), reflect what we consider to be the company's strong and defendable position in
