Laurentian Discloses Flawed Mortgages in Home Capital Echo
- Canadian lender’s shares fall after reporting audit results
- Montreal bank says it’ll buy back $142 million of mortgages
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Laurentian Bank of Canada fell the most in almost nine years after reporting it found customer misrepresentations on some mortgage loans it sold to another firm, echoing problems that almost sunk alternative-lender Home Capital Group Inc. earlier this year.
Shares of the Montreal-based regional bank plunged 7.7 percent to C$56.11 at 4 p.m. in Toronto, reversing earlier gains that saw it reach an intraday high of C$62.92 after posting fourth-quarter earnings that beat analysts’ estimates. Laurentian’s decline, the biggest one-day drop since January 2009, dragged down Canada’s other large lenders.