Veteran corporate director James Baillie has resigned from the board of Home Capital Group Inc., just days before the company is expected to shed light on the sudden drop in its new mortgage business in the second quarter of the year.
Home Capital said Mr. Baillie resigned on Friday, July 24, for a "variety of personal reasons." He had signalled his intent to retire several months ago, the company said in a statement, but was waiting until Home Capital had found a replacement. The company said it plans to announce a new director in the third quarter of the year.
Mr. Baillie, a senior counsel at senior counsel at Torys LLP and a former chairman of the Ontario Securities Commission, joined the company's board a little more than three years ago, in February, 2012.
"On behalf of the board, we would like to thank Mr. Baillie for his services as a director of Home Capital and Home Trust," board chairman Kevin Smith said in a statement. "Jim has contributed greatly to the governance of both organizations and his wisdom will be missed. We wish him well in his retirement."
Home Capital's share price has plunged 30 per cent in recent weeks after it issued a July 10 warning that it would miss earnings expectations after its mortgage originations fell by $600-million compared to the same period last year. The company sold $1.6-billion in new mortgages in the second quarter, well below the $2.5-billion that some analysts had predicted.
The company, which operates through its subsidiary, Home Trust, said it had ended relationships with some mortgage brokers after an internal review earlier this year. Several mortgage brokers said Home Capital cut ties with several brokers in Ontario after an internal audit found some brokers weren't providing proper documentation for new mortgage applications.
Home Capital's share price closed at $29.15 on Monday.