Article content

Home Capital Group Inc. said it’s seeking new sources of funding to counter a run on deposits and warned that the failure of the Canadian lender would have significant “knock-on effects” in the broader mortgage market.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Home Capital warns its failure would have significant ‘knock-on effects’ in the mortgage market 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.





[/np_storybar]

The struggling mortgage lender has some “breathing room” to pursue strategic options and new funding sources following an $1.8 billion plunge in deposits and a 60 per cent share decline, director Alan Hibben, a former RBC Capital Markets managing director, said on a conference call.

“I don’t expect there to be any new significant transactions within the next days and weeks, however that shouldn’t be misconstrued, we will be extremely active in bringing a range of options forward,” Hibben said without elaborating. The former investment banker said he’s taking a more active role alongside management.