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UPDATE 1-Home Capital names new board member amid regulatory probe

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May 5 (Reuters) - Home Capital Group Inc named Alan Hibben to its board, replacing Gerald Soloway, who has been accused by regulators of making "materially misleading statements" to investors.

Soloway, one of the founders of the mortgage lending company, said last month he would step down from the board once a replacement was found.

Home Capital said Hibben will be appointed to the board effective Friday and will stand for election at the company's upcoming annual meeting to be held next month in Toronto.

Hibben, who retired as a managing director from RBC Capital Markets in 2014, has been an adviser to the Province of Ontario on a number of files including the Companies' Creditors Arrangement Act (CCAA) processes for Stelco and Algoma Steel.

He also serves as a director on the boards of HudBay Minerals Inc, Extendicare Inc and the Mount Sinai Hospital Foundation.

"This is the start of our governance renewal," Kevin Smith, chairman of the board, said in a statement.

The Ontario Securities Commission (OSC) in April accused Canada's biggest non-bank mortgage lender of making "materially misleading statements" to investors and issued allegations against the company's former chief executives, Soloway and Martin Reid, and current Chief Financial Officer Robert Morton.

The company said it had made "considerable progress" in identifying new candidates for the board and for a new chief executive. The new CEO will in turn be involved in hiring the new chief financial officer, it said.

Soloway, who will resign from the board effective Friday, will not stand for re-election, Home Capital said. Last month, the company said he would contest elections to the board at the annual general meeting. (Reporting by Arathy S Nair in Bengaluru; Editing by Supriya Kurane)