Here’s a rundown of the significant dates in the Home Capital saga:
June 2014 — According to the OSC’s statement of allegations, Home Capital first becomes aware of irregularities with its Accelerator mortgage applications handled by one of its underwriters.
August 2014 — Home Capital launches Project Trillium, an internal probe that the OSC claims runs to Feb. 2015.
September 2014 — Robert L. Morton joins the company as chief financial officer of subsidiary Home Trust.
September 2014 — The company begins cutting ties with mortgage brokerages and brokers. A total of 45 brokers, who were responsible for about 10 per cent of Home Capital’s total mortgage originations in 2014, are cut by March 2015.
Dec. 31, 2014 — Executive vice president and chief financial officer of Home Capital and Home Trust Robert J. Blowes retires from the company.
Jan. 1, 2015 — Morton is appointed as executive vice president and chief financial officer of the Home Capital and Home Trust company.
Feb. 9, 2015 — The OSC alleges that CFO Morton writes an email that says disclosure about Project Trillium is “buried pretty deep within existing wording on cyber risk,” in the company’s financial statements. “I would be impressed if someone even asked about it,” he is quoted as writing in the OSC’s statement of allegations.
June 2015 — A Home Capital vice-president submits a memo to chair of the audit committee of the board under the company’s whistleblower policy warning of a failure to comply with timely and continuous disclosure obligations, according to the OSC. The chair of the audit committee at the time was Robert Mitchell.
July 10, 2015 — Home Capital issues a news release saying it has terminated relationship with certain mortgage brokers and expects second quarter earnings to be lower than a year earlier.
July 27, 2015 — Director James C. Baillie resigns from the board for personal reasons, “several months” after indicating his plan to resign, according to the company. The former OSC chair oversaw the internal probe into problems with mortgages. He was on the board from 2012.
July 29, 2015 — A second news release is issued at the request of the Ontario Securities Commission with additional information about the suspension of relationships with brokers. It says that an “external source” alerted Home Capital’s board of directors in late 2014 “to possible discrepancies in income verification information submitted by certain mortgage brokers.”
May 11, 2016 — Gerald Soloway steps down as CEO of Home Capital, a company he founded, after almost 30 years.
Feb. 10, 2017 — Home Capital issues a news release that says an OSC enforcement notice has been sent to the company.
Mar. 14, 2017 — Home Capital issues a news release that says OSC enforcement notices sent to “several” current and former officers and directors “relating to disclosure and, in some instances, trades in the company’s shares.”
Mar. 27, 2017 — Home Capital terminates CEO Martin Reid. Board member Bonita Then becomes interim CEO.
April 19, 2017 — OSC issues formal statement of allegations including misleading disclosure and failure to satisfy continuous disclosure obligations.
April 24, 2017 — Home Capital announces that founder Gerald Soloway will step down from the board when a “replacement with recognized expertise” is named. Robert Morton is to move to a role “outside the financial reporting group” following the filing of first quarter results to be released in May. Home Capital adds that Blowes will serve as interim CFO after its reports its first-quarter earnings. The company’s new CEO, once found, will select a permanent replacement for Blowes.
May 3, 2017 — Home Capital postpones first quarter financial results to May 11, and pushes annual shareholders meeting to sometime in June.
May 4, 2017 — Home Capital lawyers make first public appearance at the OSC. Lawyers for staff of the regulator say they aim to ‘expedite’ a hearing on the merits in the case. Plan is to get it under way by mid-July.