{"id":28600,"date":"2017-12-05T20:03:31","date_gmt":"2017-12-06T01:03:31","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28600"},"modified":"2017-12-05T20:03:31","modified_gmt":"2017-12-06T01:03:31","slug":"second-cockroach-canadian-mortgage-lender-crashes-after-admitting-mortgage-fraud","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28600","title":{"rendered":"Second Cockroach: Canadian Mortgage Lender Crashes After Admitting Mortgage Fraud"},"content":{"rendered":"

Second Cockroach: Canadian Mortgage Lender Crashes After Admitting Mortgage Fraud<\/a><\/h3>\n
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Back in April\/May, Canada’s biggest mortgage lender, Home Capital Group, crashed its way into the headlines, <\/a><\/strong>coming clean over its balance sheet-full of liar loans, suffered a bank run, and was forced\u00a0 to take emergency liquidty from taxpaying pensioners<\/a>, and was eventually bailed out by good old Warren Buffett.<\/strong><\/p>\n

“Probably nothing…”<\/em><\/p>\n

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Well just when everyone though that crisis was over, a second cockroach in the Canadian mortgage bubble fiasco just emerged<\/strong>…<\/p>\n

\"\"<\/p>\n

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<\/strong>.<\/u><\/p>\n

Echoing problems that almost sunk Home Capital Group, Bloomberg reports that<\/a>:<\/p>\n

An audit \u201cidentified documentation issues and client misrepresentations” with some mortgages<\/strong><\/u> from its B2B Bank unit that were sold to a third-party firm, the lender said Tuesday in its\u00a0annual report<\/a>.<\/p>\n

Laurentian said it will repurchase about C$89 million ($70 million) of those mortgages in the first quarter,<\/strong> or 4.9 percent of such loans sold to the firm.<\/p>\n

It will buy back an additional C$91 million of mortgages \u201cinadvertently<\/u>\u201d sold to the firm,<\/strong> also in the first quarter.<\/p><\/blockquote>\n

Just as we saw with Home Capital, the CEO initially shrugged it off as immaterial<\/a>:<\/p>\n

\u201cThis is largely a documentation and securitization-eligibility issue,”<\/strong> Chief Executive Officer Francois Desjardins said in a call with analysts.<\/p>\n

\u201cIt is not material for the bank, its operations, its funding nor its capital. We have worked to change processes to ensure that this issue is resolved.”<\/p><\/blockquote>\n

However, the total value of the mortgages sold to the third-party issuer was about C$1.16 billion<\/strong>, according to the bank.<\/p>\n

Laurentian said it was first alerted of the issue in September by the purchaser and initiated its own audit.<\/p>\n

Have no fear though:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Second Cockroach: Canadian Mortgage Lender Crashes After Admitting Mortgage Fraud 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\u00a0 to take emergency liquidty from taxpaying pensioners, and was eventually bailed out by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,950,7287,2340,17362,4318],"class_list":["post-28600","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-fraud","tag-home-capital-group","tag-housing-market","tag-laurentian-bank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28600"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28600\/revisions"}],"predecessor-version":[{"id":28601,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28600\/revisions\/28601"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}