(Adds comment from chair)
TORONTO, June 14 (Reuters) - Home Capital Group Inc HCG.TO said on Wednesday it had agreed on a settlement with the Ontario Securities Commission (OSC) and accepted responsibility for misleading investors about problems with its mortgage underwriting procedures.
Canada's biggest non-bank lender said that it would make a payment of C$10 million ($7.6 million) and reimburse the commission's costs of C$500,000. It also said that it would make a payment of C$29.5 million to settle a class action lawsuit.
"Home Capital will accept full responsibility for failing to meet its disclosure obligations to the marketplace and appreciates the importance of the serious concerns raised by the Commission with respect to continuous and timely disclosure," the company's Chair Brenda Eprile said in a statement.
Depositors have withdrawn 95 percent of funds from Home Capital's high interest savings accounts since March 27, when the company terminated the employment of former Chief Executive Martin Reid.
The withdrawals accelerated after April 19, when the OSC, Canada's biggest securities regulator, accused Home Capital of making misleading statements to investors about its mortgage underwriting business.
Reuters reported on Wednesday that Home Capital was in talks with a syndicate of banks, including some of Canada's biggest lenders, to secure a loan of about C$2 billion ($1.5 billion) to replace a costly emergency credit line it agreed in April. = 1.3234 Canadian dollars)