More customers pull deposits
The resignations come as Home Capital grapples with a series of problems
The firm as hired RBC Capital Markets and BMO Capital Markets to advise on further financing and strategic options
The company has faced accelerated withdrawals by depositors since the announcement of various senior management changes, and allegations of disclosure violations from the OSC
The OSC has alleged the company, two former CEOs and the current CFO broke the law in their handling of a scandal involving falsified loan applications
The company’s CFO will be assigned new responsibilities after first-quarter results are filed next month
Management will remain focused on growth while defending the firm from the OSC's allegations, says the company’s chairman in an open letter
The regulator alleges that the firm misled shareholders about the causes of the decline in mortgage originations, which were related to fraud among certain mortgage brokers
The announcement comes as the mortgage lending firm finds itself confronting declining stock value and earnings as well as scrutiny from Ontario’s securities regulator
Martin Reid will take over from the long-time head of the alternative mortgage lender at the firm’s annual general meeting on May 11