TORONTO -- Home Capital Group Inc. (TSX:HCG) says mortgage brokers who were suspended for allegedly falsifying income information generated nearly twice as much in mortgages as the company originally reported.
The mortgage lender said in July that the 45 brokers that it cut ties with generated $960.4 million of loans in 2014 -- or 5.3 per cent of the outstanding loans on its balance sheet.
In its third-quarter earnings report, issued after markets closed on Wednesday, Home Capital said the total value of outstanding loans generated by the suspended brokers -- which extends beyond those loans initiated in 2014 -- was $1.72 billion as of Sept. 30.
That represents more than seven per cent of the company's $23.43 billion of outstanding mortgage loans as of that date.
Home Capital said the balance has declined as customers have paid down their loans.
As of June 30, the total amount of loans generated by the suspended brokers was $1.93 billion, the lender said in its most recent earnings release.
The lender says it is continuing to actively monitor the mortgages and that so far, it has not found any unusual credit issues.
The investigation will continue into 2016.
