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CORRECTED-Home Capital says third party plans to buy C$1.5 bln in mortgages

Published 2017-05-09, 08:08 a/m
© Reuters.  CORRECTED-Home Capital says third party plans to buy C$1.5 bln in mortgages
HCG
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(Corrects currency to Canadian dollars)

May 9 (Reuters) - Home Capital Group Inc HCG.TO said a third party intends to buy up to C$1.5 billion ($1.10 billion) in mortgages, at a time when Canada's biggest non-bank lender is attempting to stem the flow of customer withdrawals.

The third party has indicated its non-binding intention to buy as much as C$1 billion in uninsured mortgages and to buy or accept commitments for up to C$500 million in insured mortgages. Capital is under pressure as it deals with a plunge in its high-interest savings accounts deposits, the recent departures of its founder and chief executive, and faces a regulatory probe for misleading investors. ($1 = 1.3694 Canadian dollars)

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