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Liberty sues NZF claiming breach of Mike Pero Mortgages JV

Liberty Financial is claiming NZF Group has breached the terms of their Mike Pero Mortgages joint venture.

Wednesday, February 15th 2012, 5:35PM

by Jenny Ruth

NZF chief executive Mark Thornton says the Australian non-bank lender has started legal action in the High Court against his company but NZF believes its claim is without merit and will vigorously defend all claims made by Liberty.

"NZF believes that the action taken by Liberty is an unwarranted attempt to force NZF to compulsorily transfer its shareholding (in Mike Pero Mortgages) to Liberty which would be required if NZF had triggered an event of default under the joint venture agreement," Thornton says.

Thornton says his company would be prepared to sell Liberty its 50% of the mortgage broking business if Liberty was prepared to pay fair value but the legal action appears designed to allow Liberty to gain the stake on the cheap.

"We would definitely consider it. We've found owning half of something isn't good enough and they're not easy people to deal with," Thornton says.

While confident NZF will prove Liberty's claim to be without merit, he is concerned about the potential damage the dispute could do to the Mike Pero Mortgages brand, even though the dispute has nothing to do with the mortgage broker's operations or those of its franchisees.

"We can't do anything about that other than to assure everybody it's just a shareholder matter."

Currently, Mike Pero Mortgages is operating profitably and is self-sustaining, he says.

Even with all his company's difficulties last year, when it was negotiating to sell 80% of its home loans origination business to another Australian non-bank lender, Resimac, and dealing with the receivership of its finance company, NZF Money, in July, NZF has continued to support the joint venture.

That included finding its share of the cash to fund the mortgage broker's move into the real estate market last year, Thornton says.

NZF is also providing the mortgage broker with accounting expertise and tax advice.

Meanwhile Resimac says it isn't yet in a position to provide any timetable for its launch in New Zealand - it settled the deal with NZF just before Christmas.

However, Resimac's New Zealand general manager Dugald Morrison says he's pleased with the progress his company has made.

"We are working on creating an enhanced offering specifically catered for the New Zealand market and are committed to providing superior customer service and support to our borrowers," Morrison says.

 

« Falling rates stimulate greater interest in fixed-rate mortgagesLiberty says legal action against NZF in Mike Pero Mortgages' best interests »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society ▼8.60 6.75 6.40 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.49 6.49 6.49
TSB Special 7.89 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.02 5.79 5.69

Last updated: 20 November 2024 9:45am

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