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Alternative mortgage lender Home Capital Group Inc. said Thursday discussions with potential investors on the sale of certain loan portfolios are on the table to shore up its liquidity, but uncertainty around its future funding abilities casts “significant doubt on the Company’s ability to continue as a going concern.”

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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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Canada’s largest non-bank lender, which released its first-quarter earnings on Thursday more than three hours after market close, made these comments as it continues to see a run on its funding with clients continuing to withdraw their demand deposits from its subsidiary, Home Trust, jeopardizing a funding source for its mortgages.

“Potential future impact resulting from reputational concerns is inherently difficult to predict,” Home Capital said late Thursday, in its management discussion and analysis as part of its latest earnings release. “Therefore management believes that material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.”