Congrats to Home Trust on an excellent quarter, despite a tough credit market. The parent company’s earnings rose 18.1% year-over-year, to $24.2 million. Their funded mortgages rose 73.1%, to $899.8 million!
In a conference call, CEO Gerald Soloway offered a soothing message. He said, “For the whole year, we’ve been in a battle-stations mode waiting for the attack on the Canadian real-estate market. We haven’t seen it, we don’t see it now, we don’t see it on the horizon.”
Below are a few other tidbits from their earnings report and conference call:
The company attributes a lot of success to its relatively young commercial mortgage wing.
Home Trust also benefited notably from the “withdrawal of some of (its) competitors from the residential mortgage marketplace.” (Perhaps Accredited’s departure will help them further.)
Home Trust thinks it can “meet or exceed” 20% earnings and mortgage growth in 2008
Government-backed securitization is still going strong. The company says CMHC-insured mortgage-backed securities and the Canada Mortgage Bond program “have been only modestly affected by current credit market conditions.”
Home Trust is a subsidiary of Home Capital Group Inc. (TSX: HCG).
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