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Date Published : Wednesday, May 28, 2008
The non-bank mortgage sector in Australia is losing its magic and could see a series of consolidation moves in months to come, according to reports.
A number of lenders have been weakened considerably since last summer's credit crunch and GE Money has revealed that it is considering it options with regards to the Wizard Home Loans company.
Having acquired the business in 2004, GE Money has made clear that it may decide to establish a strategic partnership or joint venture in order to turn around its fortunes.
But the financial services giant is keen to stress that its plans to not amount to a concrete intention to sell Wizard Home Loans, which it bought for around $500 million.
The man who sold the business to GE Money, Mark Bouris, has denied that he plans to buy it back and maintained that he is working on behalf of the parent company to secure a good deal going forward.
Mr Bouris is now the chairman of Wizard Home Loans and he told the Sydney Morning Herald: "Nobody can say - not even banks - that there is no stress in the current environment, in terms of mortgages."
"I am not a buyer and have no agreement or understanding with anyone to acquire all or a part of the business," he added.
As well as real estate-related services, Wizard Home Loans provides credit card, insurance and other borrowing solutions to its customers across Australia.
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