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Capital Home Loan

Instant Capital, Home Loans - Orange, CA - Video - Instant Capital - Orange, CA<br /> <br /> Instant Capital is a full service mortgage ...

Home Capital posts steep loss, but shows signs of recovery

The steep second-quarter loss is largely a result of $233.7-million in pre-tax expenses incurred while the company was on life support earlier this year. Costs included $130.6-million in upfront fees and interest on an emergency loan designed to prop up the business as it was bleeding deposits and its liquidity was drying up. The lender also paid another $7-million to settle a dispute with securities regulators and a class-action lawsuit.

As a result, Home Capital reported a punishing loss of $1.73 a share, far worse than the $1.29 a share that analysts surveyed by Bloomberg had predicted. In the same quarter a year ago, Home Capital posted a profit of $66.3-million or 99 cents a share.

These are the first quarterly financial results that Home Capital has reported since it secured an investment of up to $400-million and a $2-billion credit line from Berkshire Hathaway Inc., the firm led by revered value investor Warren Buffett. The filings cover a three-month stretch ending Jun. 30, which included the depths of Home Capital’s woes in April and May, but also a nine-day stretch of renewed confidence in the lender’s future after Mr. Buffett attached his name to the firm.

Home Capital's new CEO focused on corporate culture

Home Capital flirted with disaster earlier this year after Ontario’s securities regulator alleged the company failed to satisfy its disclosure obligations in a scandal about falsified loan applications that began in 2014.

The news sank Home Capital’s stock and the plunge only worsened as customers pulled their deposits, a key source of funding for the alternative mortgage lender, sparking a liquidity crisis.

Home Capital was saved after it secured an emergency loan from the Healthcare of Ontario Pension Plan and then an investment and new line of credit from Warren Buffett’s Berkshire Hathaway. The company also settled its case with the Ontario Securities Commission and hired Bissada, a veteran mortgage company executive.

Bissada said he plans to talk with employees, customers, brokers, regulators, investors and other stakeholders about his plans and strategic direction for the company.

Does Capital One have a loan that I can use to pay off another credit card, besides a home loan?

I do not own a home. My Capital One interest rate is about half of my other credit card.

They offer personal unsecured loans, but make sure your credit is good before applying.