Back in April/May, Canada's biggest mortgage lender, Home Capital Group, crashed its way into the headlines, coming clean over its balance sheet-full of liar loans, suffered a bank run, and was forced to take emergency liquidty from taxpaying pensioners, and was eventually bailed out by good old Warren Buffett.
Everyone - Crisis - Cockroach - Mortgage - Fiasco
Well just when everyone though that crisis was over, a second cockroach in the Canadian mortgage bubble fiasco just emerged...
Laurentian Bank of Canada fell the most in almost nine years after reporting it found customer misrepresentations on some mortgage loans it sold to another firm.
Problems - Home - Capital - Group - Bloomberg
Echoing problems that almost sunk Home Capital Group, Bloomberg reports that:
An audit “identified documentation issues and client misrepresentations" with some mortgages from its B2B Bank unit that were sold to a third-party firm, the lender said Tuesday in its annual report.
Laurentian - C - Mortgages - Quarter - Percent
Laurentian said it will repurchase about C$89 million ($70 million) of those mortgages in the first quarter, or 4.9 percent of such loans sold to the firm.
It will buy back an additional C$91 million of mortgages “inadvertently” sold to the firm, also in the first quarter.
Home - Capital - CEO
Just as we saw with Home Capital, the CEO initially shrugged it off...
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