Home Capital shares slump as OSC takes action

The share price of Home Capital Group slumped 20 per cent Thursday amid administrative proceedings against the company and three individuals.

The action relates to the mortgage lender’s disclosure requirements which it says it has always carefully considered and believes it has adhered to. It says it will defend the allegations made against it “vigorously.”

“Home Capital remains focused on serving our customers, carrying on our business and executing on our strategy of creating prudent, profitable growth,” said Kevin P.D. Smith, chair of the Home Capital board of directors. “Home Capital has made significant progress in strengthening an already solid business, and we are confident in our prospects. We will share our accomplishments when we report our first-quarter results on May 3."

He said that there would be no further comment on the OSC matter as it is a regulatory issue.

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