November 5, 2015 11:44 am

Home Capital’s probe into alleged fraud by mortgage brokers widens

Hamilton is following the GTA trend of a softer market in March compared to last year.

THE CANADIAN PRESS/Sean Kilpatrick
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TORONTO – Home Capital Group Inc. says mortgage brokers who were suspended for allegedly falsifying income information generated roughly twice as much in mortgages as the company originally estimated.

In its third-quarter earnings report, issued after markets closed on Wednesday, the mortgage lender said the total value of outstanding loans generated by the 45 brokers that it cut ties with was $1.72 billion as of Sept. 30.

That represents nearly 10 per cent of the company’s $18.17 billion of outstanding mortgage loans as of that date.

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Home Capital said the balance has declined as customers have paid down their loans.

As of June 30, the total amount of loans generated by the suspended brokers was $1.93 billion, the lender said in its most recent earnings release.

Home Capital had previously pegged the figure at $960.4 million – or 5.3 per cent of the outstanding loans on its balance sheet.

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