Business

Home Capital terminates CEO Martin Reid

Firm has said it received an OSC enforcement notice about disclosure of falsified loan applications

Posted: March 27, 2017
Last Updated: March 28, 2017

Martin Reid speaks at Home Capital annual general meeting in Toronto in this May 2011 photo. The company said Monday that it has terminated Reid (Aaron Vincent Elkaim/Canadian Press)

Home Capital Group Inc. has terminated its president and CEO Martin K. Reid, effective immediately.

Kevin P.D. Smith, chair of the board of directors, said in a statement Monday that the Toronto-based mortgage lender requires leadership that can bring a renewed operational discipline, emphasis on risk management and controls, and focus on improving performance.

The announcement comes two weeks after the company said it had received an enforcement notice from the Ontario Securities Commission relating to its disclosure that some loan applications had been falsified.

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Reid, who took over as CEO in May 2016, has also been removed from the board of directors of the company's subsidiaries, including Home Trust.

Bonita J. Then, a member of Home Capital's board of directors, will serve as interim leader while the company searches for a new full-time replacement.