He said the credit quality improvement seen so far this year could be an indication that business previously booked at the Big Six banks is migrating to Home Capital for mortgage solutions — but did not elaborate on why, given that Home Capital is subject to the new rules. The company has previously said it is concerned about the impact of the recent revisions to mortgage underwriting guidelines for federally regulated institutions. Shares of Home Capital closed down six per cent at $16.30 on the TSX after the company reported its quarterly financial results. Revenue dropped in the quarter to $109.5 million, from $144.6 million in the similar quarter a year ago, but ahead of Thomson Reuters estimates of $86.5 million. More recently, separate lawsuits by a short seller and West Face Capital Inc. were launched against Home Capital and three former executives, both alleging the lender's public disclosure was inaccurate and misleading.

Source: CBC News February 15, 2018 17:03 UTC