Mortgage lender Home Capital Group Inc. said Monday that it had terminated the employment of its CEO and appointed a temporary replacement.
Martin Reid, who had been with Home Capital for a decade, will leave immediately and no longer serve on any of boards of directors of the firm or its subsidiaries.
The move comes amid a continuing review of Home Capital and its executives by the Ontario Securities Commission. The regulator said earlier this month that it had served enforcement notices to past and current company management related to the disclosure of an investigation into fraudulent mortgage documents.
Home Capital said in a press release at the time that it “believes that its disclosure satisfied applicable disclosure requirements.”
The notice relates to the way that the company told its investors that it had suspended 45 mortgage brokers. That move was related to the brokers’ submission of fake or altered income verification documents in 2014 and 2015.
“Home Capital requires leadership that can bring to bear a renewed operational discipline, emphasis on risk management and controls, and focus on improving performance,” Home Capital’s chair Kevin Smith said.
Mr. Reid had been CEO of Home Capital since May 2016, following the retirement of its longtime-leader, Gerald Soloway.
Stepping in as interim CEO and president is Bonita Then, who has been a company director since 2008 and has served on the audit committee and the risk and capital committee.
Ms. Then has a background in consumer products and foods, having formerly been an executive of U.S.-based company Specialty Foods Ltd. and Humpty Dumpty Snack Foods Inc., according to Home Capital’s press release. She also has experience in financial services companies.
“We will continue to execute on our strategy under the supervision of Bonita Then, a longtime director who is an experienced executive in her own right, and the rest of our experienced management team,” Mr. Smith said.Report Typo/Error