Home Capital Group Inc. said it’s capturing mortgage business from Canadian lenders including Toronto-Dominion Bank and Canadian Imperial Bank of Commerce that are retreating from the C$200 billion ($201 billion) nonprime market amid signs of a housing downturn.
Toronto-Dominion Bank is near an agreement to buy Chrysler Financial, the lender once owned by the third-largest U.S. automaker, from Cerberus Capital Management LP, said three people with knowledge of the matter.
Wilmington Trust Corp. , the Delaware bank founded by the du Pont family, has been contacting bigger lenders in recent weeks to gauge their interest in buying the company, said people with knowledge of the matter.
Royal Bank of Canada and Toronto- Dominion Bank, the two largest Canadian lenders, have traits that may make them “systemically important” because of their large capital markets businesses, according to Moody’s Investors Service.
Canadian Finance Minister Jim Flaherty says it’s up to commercial banks -- not government -- to rein in lending as household debt soars, countering comments by Toronto-Dominion Bank Chief Executive Officer Edmund Clark .