Home Capital Group Inc. announces agreement to purchase $34 million mortgage portfolio
TORONTO, May 19 /CNW/ - Home Capital Group Inc. (HCG.B) announced today
that its wholly owned subsidiary, Home Savings & Loan Corporation, has entered
into an agreement to purchase a $34 million mortgage portfolio from the Mutual
Life Assurance Company of Canada.
This well seasoned portfolio consists of 135 residential and
non-residential accounts located in the Toronto area market. The transaction
is scheduled to close over three months, with approximately $17 million
closing in June 1999.
Mr. Gerald M. Soloway, President and Chief Executive Officer of Home
Capital Group, said, ''We are delighted to secure this quality portfolio as
part of our prudent growth strategy. While our core business focus remains on
residential first mortgages, this acquisition represents an attractive
addition to our already solid portfolio.
''This transaction presents a low risk means of growing our business and
providing added value to our shareholders. The additional mortgages meet all
of our stringent lending criteria, including loan to value and interest
spreads. It increases the overall size of Home Savings & Loan Corporation's
mortgage portfolio by some seven per cent.''
Home Capital Group Inc. is a holding company, publicly traded on the
Toronto Stock Exchange (HCG.B), operating thorough its principal subsidiary,
Home Savings & Loan Corporation. Home Savings & Loan was incorporated in 1977
and is a regulated financial institution that offers deposit and mortgage
lending services. The Company's service area is primarily Ontario and has
recently expanded into Western Canada.
-0- 05/19/1999
For further information: Gerald M. Soloway, President and Chief Executive Officer, or W. Roy Vincent, Senior Vice President, Phone (416) 360-4663, Fax (416) 363-7611, www.homecapital.com
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