News: Uncertainty at Home Capital Group Affects Equitable Bank

Alternative mortgage lending is a risky but profitable business.   Fraud that first occurred at Home Capital Group (HCG) back in June 2015 is now pummelling shares of this alternative mortgage lender.   Other alternativve residential mortgage lenders such as Equitable Bank (EQB) and Genworth Financial also saw their share values free fall, even though there hasn't been any negative news about these other companies.

Read all about it here:
http://business.financialpost.com/news/fp-street/what-exactly-is-home-capital-and-why-is-it-so-important-to-the-mortgage-industry

HCG share price as of April 27, 2017

HCG share price is down 60% since April 25th, 2017.

EQB Share price as of April 27, 2017

EQB share price is down over 23% since April 25th, 2017.

Since our May 2015 (M2014) portfolio is holding EQB, I'll revisit it's share price in May 2017 when I do my next portfolio status check.  It's share price was approx $70 back in February 2017 and hit an all-time low of $36.54 yesterday.  It will be interesting to see whether the share price rebounds or not.

Update as of May 1:

http://business.financialpost.com/news/fp-street/equitable-group-rushes-to-contain-contagion-risk-from-home-capital-maelstrom