Home Trust reaffirms its commitment to brokers

Home Trust reaffirms its commitment to brokers

Home Trust reaffirms its commitment to brokers Despite having to sever ties with a number of brokers who falsified client documents, Home Trust is still dedicated to the channel.
 
“We have full confidence in the channel and we are not wavering in our commitment to brokers,” Pino Decina executive vice president of residential mortgage lending at Home Trust told MortgageBrokerNews.ca.
 
And while an investigation may be ongoing, Home Trust says the regulators have been “complimentary” about how it has so far handled falsified documents on originations.
 
“As a federally regulated lender we have kept all the necessary parties informed,” Decina said. “The regulators are very complimentary of how it has been handled.”
 
The lender announced Thursday that it had suspended 45 brokers for falsifying client income information.
 
But it has not yet made the decision about the length of the suspensions, but it does belive it has flagged all of the originations containing falsified information.
 
“At this point it’s hard to say,” Decina said “Based on what we see right now this is a long-term suspension.”
 
Decina is confident that nothing could have been done differently to flag those mortgage applications.
 
“In hindsight there is always something we could have done better … (but) even if certain things were done differently it would not have caught some things,” Decina said. “With changing guidelines and heightened requirements there is going to be due diligence over and above what we’ve done in the past.”
 
The company is confident it is not a pervasive issue, noting that those flagged for falsifying documents were a mere 45 out of 4,000 broker partners.
 
FSCO, meanwhile, will neither confirm nor deny that it has an ongoing investigation pertaining to Home Trust.
 
“In cases where FSCO believes there may be non-compliance with legislation and regulations, we conduct a thorough investigation.  Depending on the findings, we may then take enforcement action,” Malon Edwards, senior communications officer for FSCO told MortgageBrokerNews.ca in an email. “To maintain the integrity of all of our investigations, FSCO can neither confirm nor deny the existence of any specific complaints or investigations against individuals or businesses.”
 
7 Comments
  • okay 2015-08-04 1:23:50 PM
    Home Capital has a lot on their plate with the damage control. Publicly traded stock (TSE: HCG) is down from peak of November 2014 at almost $56 record high to $31 and a bit or about 45% loss. HCG is among other companies shorted by some CDN and US investors and considered one of the first to go belly up with upcoming real estate crash, due to a majority of uninsured mortgage securities in their portfolio and without fed interest of potential financial help similar to secret bailout 2008-2010 of our banking system often lauded for being one of the world's safest.

    http://www.cbc.ca/news/business/banks-got-114b-from-governments-during-recession-1.1145997
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  • Ron Butler 2015-08-04 8:13:10 PM
    Okay = Another conspiracy nut. Or ............. troll working for the short sellers.
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  • Victor Simone 2015-08-04 10:40:43 PM
    I feel badly for the good people at Home Trust, as this could have happened to any lender.

    I agree with Mr. Decina that sometimes no matter what safeguards one has in place that criminal minds will surely find away around.

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