Home Capital Group has released details of broker suspensions and reported its quarter two financial results. The information regarding the suspensions was requested by the Ontario Securities Commission. The mortgage lender states that along with its internal review of broker relationships it was alerted by an external source to “possible discrepancies in income verification information submitted by certain mortgage brokers.”
An investigation, carried out with the assistance of independent professional advisors, “determined that falsification of income information had occurred but that there was no evidence of falsification of credit scores or property values. The brokers associated with the mortgage applications were identified and during the period of September 2014 to March 2015, the Company suspended its relationship with 18 independent mortgage brokers and 2 brokerages, for a total of approximately 45 individual mortgage brokers.”
Home Capital concluded that it was unlikely to lead to credit losses. It says that during the period September 2014 to March 2015, a total of 53 brokers were suspended and over 300 new brokers were added to the Company’s approved list.
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