{"id":12852,"date":"2017-06-19T02:00:39","date_gmt":"2017-06-19T06:00:39","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=12852"},"modified":"2017-06-16T16:13:19","modified_gmt":"2017-06-16T20:13:19","slug":"home-capital-reaches-deal-to-settle-with-the-osc","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/","title":{"rendered":"Home Capital Reaches Deal to Settle with the OSC"},"content":{"rendered":"

Home Capital Group announced on Thursday that it has agreements in place to settle with the Ontario Securities Commission (OSC) and with respect to a class-action lawsuit related to the allegations of misleading disclosure.<\/p>\n

Earlier this year, the OSC alleged that the mortgage lender, as well as three of its former executives, breached the province\u2019s securities laws. Also, a class-action suit alleged that the company didn\u2019t make required disclosures regarding its termination of relationships with some mortgage brokers<\/a> and brokerages in 2014 and 2015.<\/p>\n

Read: <\/strong>What Mortgage Borrowers Should Know About Home Capital Group<\/strong><\/a><\/p>\n

“These settlements will enable us to move forward with regaining the confidence of our depositors and shareholders and creating value for all our stakeholders,” says Brenda Eprile, chair of the Home Capital board.<\/p>\n

Recovering From a Run on Cash<\/h2>\n

After the OSC announced its allegations, Home Capital\u2019s customers rushed to withdraw money\u2014funds the company uses for mortgage lending\u2014from their high-interest savings accounts<\/a>, leaving the company in a bind. As a result, Home Capital was forced to get an emergency $2-billion line of credit to keep its business running. The company also saw its stock price plunge.<\/p>\n

Under the deal with the OSC, Home Capital will make a payment of $10 million and also reimburse the regulator $500,000 in costs. The company\u2019s founder and former CEO Gerald Soloway will pay an administrative penalty of $1 million and be prohibited from serving as a director or officer of a public company for four years.<\/p>\n

Former CEO Martin Reid and former chief financial officer Robert Morton will each pay $500,000 in penalties. They\u2019ll also be barred from serving as a director or officer of a public company for two years.<\/p>\n

Under the class-action settlement, Home Capital will make a payment of $29.5 million\u2014which includes\u00a0$11 million\u00a0of the payments being made in the Commission settlement.<\/p>\n

Owning Up to the OSC<\/h2>\n

The company also accepted full responsibility for failing to meet its disclosure obligations. It was an about face from just two months ago. In April, Home Capital said it believed \u201cits disclosure satisfied applicable disclosure requirements\u201d and the OSC\u2019s allegations were \u201cwithout merit.\u201d Now, the lender also \u201cacknowledges that the Commission is not to blame for the events of recent months involving its liquidity position.”<\/p>\n

Each settlement is conditional upon the approval of the other. The OSC has scheduled a hearing for August 9 to consider whether to approve the settlement. The parties involved in the class action\u00a0are in the process of obtaining a date for an initial court hearing.<\/p>\n

Home Capital expects to fund substantially all of the costs of the settlements through its available liability insurance.<\/p>\n

RateHub.ca is a website that compares <\/em>mortgage rates<\/em><\/a>,\u00a0<\/em>credit cards<\/em><\/a>, high-interest savings accounts, <\/em>chequing accounts<\/em><\/a>, and <\/em>insurance<\/em><\/a> with the goal to empower Canadians to search smarter and save money.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Home Capital Group announced on Thursday that it has agreements in place to settle with the Ontario Securities Commission (OSC) and with respect to a class-action lawsuit related to the allegations of misleading disclosure. Earlier this year, the OSC alleged that the mortgage lender, as well as three of its former executives, breached the province\u2019s […]<\/p>\n","protected":false},"author":42,"featured_media":12855,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":""},"categories":[487,468],"tags":[],"class_list":["post-12852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guest-posts","category-mortgages-2"],"yoast_head":"\nHome Capital Reaches Deal to Settle with the OSC | Zoocasa Life<\/title>\n<meta name=\"description\" content=\"In the latest in the ongoing alternative lender saga, Home Capital reaches deal to settle with the Ontario Securities Commission over allegations of...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Home Capital Reaches Deal to Settle with the OSC | Zoocasa Life\" \/>\n<meta property=\"og:description\" content=\"In the latest in the ongoing alternative lender saga, Home Capital reaches deal to settle with the Ontario Securities Commission over allegations of...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoocasa Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Zoocasa\" \/>\n<meta property=\"article:published_time\" content=\"2017-06-19T06:00:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-06-16T20:13:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2017\/06\/Bank-of-Canada-rate.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"397\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ratehub.ca\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Zoocasa\" \/>\n<meta name=\"twitter:site\" content=\"@Zoocasa\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ratehub.ca\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\"},\"author\":{\"name\":\"Ratehub.ca\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/bf5eea3d5f6088b686ce36a5742520e0\"},\"headline\":\"Home Capital Reaches Deal to Settle with the OSC\",\"datePublished\":\"2017-06-19T06:00:39+00:00\",\"dateModified\":\"2017-06-16T20:13:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\"},\"wordCount\":479,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\"},\"articleSection\":[\"Guest Posts\",\"Mortgages\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\",\"name\":\"Home Capital Reaches Deal to Settle with the OSC | Zoocasa Life\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#website\"},\"datePublished\":\"2017-06-19T06:00:39+00:00\",\"dateModified\":\"2017-06-16T20:13:19+00:00\",\"description\":\"In the latest in the ongoing alternative lender saga, Home Capital reaches deal to settle with the Ontario Securities Commission over allegations of...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoocasa.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Home Capital Reaches Deal to Settle with the OSC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#website\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/\",\"name\":\"Zoocasa Blog\",\"description\":\"Home Buying & Selling Tips, Real Estate Market Trends & News\",\"publisher\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoocasa.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\",\"name\":\"Zoocasa\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png\",\"contentUrl\":\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png\",\"width\":800,\"height\":800,\"caption\":\"Zoocasa\"},\"image\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Zoocasa\",\"https:\/\/twitter.com\/Zoocasa\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/bf5eea3d5f6088b686ce36a5742520e0\",\"name\":\"Ratehub.ca\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d1a7bb5459d9d2a1428cc0afd32f0dd4742a1acef71c9239090f41be30e6083f?s=96&d=blank&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d1a7bb5459d9d2a1428cc0afd32f0dd4742a1acef71c9239090f41be30e6083f?s=96&d=blank&r=g\",\"caption\":\"Ratehub.ca\"},\"description\":\"At Ratehub.ca we make it easier for Canadians to choose better personal finance. With the best tools, rates and knowledge to help you take control of your money. Whether it\u2019s a mortgage rate or insurance rate, a credit card, chequing account or high-interest savings account, we are your champions of choice.\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/author\/ratehub\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Home Capital Reaches Deal to Settle with the OSC | Zoocasa Life","description":"In the latest in the ongoing alternative lender saga, Home Capital reaches deal to settle with the Ontario Securities Commission over allegations of...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/","og_locale":"en_US","og_type":"article","og_title":"Home Capital Reaches Deal to Settle with the OSC | Zoocasa Life","og_description":"In the latest in the ongoing alternative lender saga, Home Capital reaches deal to settle with the Ontario Securities Commission over allegations of...","og_url":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/","og_site_name":"Zoocasa Blog","article_publisher":"https:\/\/www.facebook.com\/Zoocasa","article_published_time":"2017-06-19T06:00:39+00:00","article_modified_time":"2017-06-16T20:13:19+00:00","og_image":[{"width":600,"height":397,"url":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2017\/06\/Bank-of-Canada-rate.jpg","type":"image\/jpeg"}],"author":"Ratehub.ca","twitter_card":"summary_large_image","twitter_creator":"@Zoocasa","twitter_site":"@Zoocasa","twitter_misc":{"Written by":"Ratehub.ca","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/#article","isPartOf":{"@id":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/"},"author":{"name":"Ratehub.ca","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/bf5eea3d5f6088b686ce36a5742520e0"},"headline":"Home Capital Reaches Deal to Settle with the OSC","datePublished":"2017-06-19T06:00:39+00:00","dateModified":"2017-06-16T20:13:19+00:00","mainEntityOfPage":{"@id":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/"},"wordCount":479,"commentCount":0,"publisher":{"@id":"https:\/\/www.zoocasa.com\/blog\/#organization"},"articleSection":["Guest Posts","Mortgages"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/","url":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/","name":"Home Capital Reaches Deal to Settle with the OSC | Zoocasa Life","isPartOf":{"@id":"https:\/\/www.zoocasa.com\/blog\/#website"},"datePublished":"2017-06-19T06:00:39+00:00","dateModified":"2017-06-16T20:13:19+00:00","description":"In the latest in the ongoing alternative lender saga, Home Capital reaches deal to settle with the Ontario Securities Commission over allegations of...","breadcrumb":{"@id":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.zoocasa.com\/blog\/home-capital-reaches-deal-to-settle-with-the-osc\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.zoocasa.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Home Capital Reaches Deal to Settle with the OSC"}]},{"@type":"WebSite","@id":"https:\/\/www.zoocasa.com\/blog\/#website","url":"https:\/\/www.zoocasa.com\/blog\/","name":"Zoocasa Blog","description":"Home Buying & Selling Tips, Real Estate Market Trends & News","publisher":{"@id":"https:\/\/www.zoocasa.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.zoocasa.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.zoocasa.com\/blog\/#organization","name":"Zoocasa","url":"https:\/\/www.zoocasa.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png","contentUrl":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png","width":800,"height":800,"caption":"Zoocasa"},"image":{"@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Zoocasa","https:\/\/twitter.com\/Zoocasa"]},{"@type":"Person","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/bf5eea3d5f6088b686ce36a5742520e0","name":"Ratehub.ca","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d1a7bb5459d9d2a1428cc0afd32f0dd4742a1acef71c9239090f41be30e6083f?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d1a7bb5459d9d2a1428cc0afd32f0dd4742a1acef71c9239090f41be30e6083f?s=96&d=blank&r=g","caption":"Ratehub.ca"},"description":"At Ratehub.ca we make it easier for Canadians to choose better personal finance. With the best tools, rates and knowledge to help you take control of your money. Whether it\u2019s a mortgage rate or insurance rate, a credit card, chequing account or high-interest savings account, we are your champions of choice.","url":"https:\/\/www.zoocasa.com\/blog\/author\/ratehub\/"}]}},"_links":{"self":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts\/12852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/comments?post=12852"}],"version-history":[{"count":0,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts\/12852\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/media\/12855"}],"wp:attachment":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/media?parent=12852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/categories?post=12852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/tags?post=12852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}