Topic: How To Invest

The Successful Investor Hotline – Friday, April 21, 2017

Article Excerpt

HOME CAPITAL GROUP INC., $19.25, symbol HCG on Toronto, is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders. The stock fell 11% this week after the Ontario Securities Commission (OSC) formally charged the company with failing to disclose material information in a timely manner and making false and misleading statements. The charges also cover three of its executives: former chief executive officer Martin Reid; former president and CEO Gerald M. Soloway (who is still a director of the company); and the current chief financial offer Robert Morton. Home Capital offers most of its loans through 4,000 independent mortgage brokers. In July 2015, it cut ties with 45 brokers after it accused them of submitting loan applications with falsified income statements. The company has since reviewed all of the loans in question, and found no irregularities. The OSC alleges that Home Capital knew of these problems several months before it disclosed…