Although this year has been a tumultuous one for Home Capital Group, the lender announced Monday it has completed a cost-cutting initiative, as it expects to achieve about $15m in future annual savings.
The savings initiative – Project Expo – was launched in February this year. It involved changes to the company’s workforce and process flows, according to president and CEO Yousry Bissada.
"We have taken important steps to ensure we achieve a more efficient cost structure, and we are now firmly focused on crafting and executing a strategy for Home Capital that will drive our growth as one of Canada's leading alternative mortgage providers,” he added.
The company said some 65 full-time positions in the Company's operational, sales and underwriting division were reduced on Monday. “Taking into account the changes made today, head count measured from the end of Q2 2017 has been reduced by approximately 10%.”
The lender faced a rough start this year, as it saw rapidly depleting deposits and face allegations from the Ontario Securities Commission that it misled investors in 2015. Last June, Home Capital and three of its former executives agreed to shell out over $30m to reach settlements with regulators and investors over allegations of misleading shareholders about mortgage fraud.
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