July 31, 2015 - At the request of the Ontario Securities Commission, late Tuesday Home Capital Group (HCG) reported more details on its July 10th press release when it announced that a "review of its business partners led to the company terminating relationships with certain mortgage brokers." On Thursday, investors learned that these relationships with some 45 brokers in total had been been terminated because "falsification of income information had occurred" on mortgage applications.
According to the company, the mortgage broker terminations took place during the period from September, 2014 to March, 2015. During that period, CEO Gerald Soloway sold $2.6 million worth of shares into the public market. One could argue that the amounts were modest. Indeed, after years of low interest rates by the Bank of Canada and unrestrained assorted foreign inflows into the local property market, $2 million is only enough to snag a modest single family home in Vancouver.