Home Capital’s new leader aims to restore reputation
Bissada lauded as ‘solid’ industry veteran who can help lender rebuild reputation
Home Capital Group Inc.’s new chief executive officer is a 30-year mortgage industry veteran whose previous job experience should help the embattled lender, according to loan industry executives who know him.
But the consensus seems to be that Yousry Bissada, currently president and chief executive of Kanetix Ltd., will have his work cut out for him when he starts on Aug. 3.
“Yousry is a solid veteran in our space. Well regarded. Lots of heavy lifting in his future,” said one high-ranking industry source, who asked that his name not be used.
Bissada, has a deep resume that includes time in the mortgage divisions at two of Canada’s major banks and seven years as the CEO of Filogix Inc., a software and service provider to the mortgage industry. That is in addition to his time at Kanetix, which provides an online service for consumers looking to shop for the best insurance.
Debt rating agency DBRS Ltd. said it viewed the appointment of Bissada as a positive step toward restoring market confidence in Home Capital.
“Mr. Bissada’s 30 years of experience in the Canadian mortgage industry include senior roles that focused on operations, which DBRS sees as a positive, given the recent operational issues at HCG,” the agency said, in a note.
“With this important appointment, DBRS will look for the new CEO to articulate a strategy that will repair the group’s relationships with both the mortgage and deposit broker community, rebuild profitability and address HCG’s ability to source funding at competitive market rates.”
DBRS did say Home Capital’s ratings, including its senior debt rating of CCC, remain under review with negative implications. “The review will continue to focus on the group’s ability to restore its franchise strength and improve its liquidity and funding,” DBRS said.
Rob McLister, the founder of ratespy.com, said Bissada is a “mortgage hall of famer” and he expects Home Trust, Home Capital’s subsidiary, to see a real crackdown on any irregular dealings. “He is a culture guy and will build a culture of non-tolerance for fraud,” he said.
Another high-level executive in the industry, who didn’t want his name used, said Home Capital’s challenge will being getting funding so it can get up and running again. “He has big bank relationships and experience which helps (with) putting things in place and on a relationship with OSFI,” said the source, referring to the Office of the Superintendent of Financial Institutions.
Bissada worked with TorontoDominion Bank from 1998 to 2000, serving as vice-president of customer managements service and senior vice-president of real estate secured lending products. Before that, he was vice-president of servicing operations at CIBC Mortgages Inc.
His work at Filogix, which was acquired by DH Corp. in 2006., is expected to serve him well at Home Capital, which up until a few years ago had a paper-based system for tracking its mortgages. “He’s got the tech background through Filogix and Kanetix Ltd.,” said the source.
Alexey Saltykov, the co-founder and chief executive of InsurEye Inc., which provides consumers with intelligence on insurance products, said he has found Bissada to be open and innovative during past dealings. “He has a strong strategic mind. He guided Kanetix through (several) acquisitions,” said Saltykov, noting his knowledge of fintech and insurancetech. “He understands the operating models that are out there.”
Justin Thouin, chief executive and founder of lowestrates.ca, said he’s worked with Bissada and now describes him as a tremendous competitor.
“He’s extremely level-headed, calm, rational and someone with integrity,” said Thouin. “Reputation and credibility and building that back up (will be his challenge). It’s definitely doable and people have short memories. It will take laying out what the plan is and doing exactly what they say they are going to do.”