* Analysts highlight Bissada's extensive industry experience
* Bissada has 30 years experience in the industry
* Bissada will look to rebuild broker relationships
* Shares up 2 percent (Adds analyst comment, background)
July 12 (Reuters) - Canadian lender Home Capital Group Inc tapped mortgage industry veteran Yousry Bissada as its chief executive, where he will be tasked with rebuilding relationships with mortgage and deposit brokers after investors withdrew 95 percent of deposits from the company's high interest savings accounts.
The move ends a search Home Capital started in March after it terminated the employment of former CEO Martin Reid.
Bissada must also navigate the business through regulatory changes, which could make it harder for sub-prime lenders such as Home Capital to do business in Canada. Regulators have turned their focus on risky lending amid fears of housing bubbles in the cities of Toronto and Vancouver and are proposing tougher rules on some mortgages.
Bissada's appointment comes after Home Capital last month secured an equity injection and a C$2 billion ($1.5 billion) line of credit from Warren Buffett's Berkshire Hathaway.
Raymond James analyst Brenna Phelan said she viewed the appointment as positive for Home Capital, adding that the Berkshire Hathaway investment would have "broadened and deepened the candidate pool."
"We view Bissada's extensive Canadian mortgage market experience and his previous leadership roles as a positive given recent company-specific and recent sector-wide regulatory reform proposals, Phelan said.
Shares of Home Capital were up 2 percent in early trading.
Bissada, who will take charge on Aug. 3, is a mortgage and financial services industry veteran with a career spanning 30 years, the company said on Wednesday.
The fifty-seven year old is currently the chief executive of Kanetix Ltd, a provider of digital services to the insurance market. He has also been chairman of two mortgage lenders, Canadiana Financial Corp and Paradigm Quest Inc.
"Between his employment experience and board appointments, it appears to us that Bissada has had meaningful exposure to both the prime and non-prime residential mortgage markets in Canada," said Laurentian Bank Securities analyst Marc Charbin.
Home Capital was forced to raise new capital in April after depositors started withdrawing funds from its high-interest savings accounts after the company terminated the employment of Reid on March 27.
The withdrawals accelerated after April 19, when Canada's biggest securities regulator, the Ontario Securities Commission, accused Home Capital of making misleading statements to investors about its mortgage underwriting business.
Last month, Home Capital settled with the commission and accepted responsibility for misleading investors..
The company is also looking for a new chief financial officer. (Additional reporting by Nivedita Bhattacharjee and Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila, Bernard Orr)