Canadian equivalent of Liberty in trouble

It looks like Home Capital, which looks like a Canadian equivalent of Liberty here is in trouble
Why Everyone Is Talking About the Troubles at a Tiny Canadian Lender
Inside Canada’s Push to Contain the Fallout From Home Capital

It caused knock on effects to similar alternative lender Equitable
It's often been mentioned that Canada has a similar market to here. Anyone see any potential Australian lenders could end up in a similar pickle?

 

How does one make this connection ?

Do they have the same business and has Liberty suffered from the same problems & do they do everything the same ?

 

No close correlation was meant.
The only connection was that Home Capital seemed to occupy a similar niche to Liberty, nothing else. It was more that Canada is a similar market and a small but not insignificant alternative lender has ended up in trouble with fraudulent loan documentation.

The question is - are there similar issues brewing the horizon with any Australian lenders?

 

Doubt it. But any things possible.


It sounds like the funding model is doferent in Canada. Liberty doesn't fund their loans from 'deposits'. Although you can invest with them, it's more akin to buying a managed fund, pds etc than a term deposit.

 

Unless there are direct similarities then may as well make any sort of wild assumption on any lender.

As far as I know liberty check on the brokers apps and those borrowing as well as not just taking anything as a security.

 

Completely different market, regulatory environment, business structure. No real parallels at all to Liberty.