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Alternative mortgage lender Home Capital Group Inc. continues to see a partial run on its funding, with its demand deposits dropping 8 per cent in one day to $134 million.

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tap here to see other videos from our team. Try refreshing your browser, or Home Capital Group Inc deposits continue to drop, bleeding another 8% in one day Back to video

Here’s a look at the company, its role in the Canadian mortgage landscape and how the discovery of fraud among its brokers two years ago continues to have ripple effects today.





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The Toronto-based company said in a statement on Wednesday that high interest savings account balances at its subsidiary Home Trust were expected to fall to that level from $146 million on May 9, after the settlement of Tuesday’s transactions. Those balances, which help fund Home Capital’s mortgage lending, are down from $1.4 billion on April 24, and $1.991 billion on March 28.

Shares of Home Capital were down more than 5 per cent in Wednesday morning trading.

Home Capital has faced liquidity issues and a crisis of confidence since the Ontario Securities Commission filed formal allegations of misleading disclosure against the mortgage lender and three of its current and former executives in connection with the discovery of falsified information in its broker channel, and the termination of 45 brokers.