By Jill Fraser for Lending Central

A bitter court dispute involving Global Mortgage Equity Corporation (which owns Mortgage House of Australia Pty Ltd) and 45 per cent shareholder, Zoltan Tomanovic has ended.

The case was dismissed on Friday, 5 March with GMEC being awarded costs and the reimbursement of company loans that had been advanced to Tomanovic interest free by GMEC majority shareholder and Mortgage House managing director Ken Sayer.

The dispute, in which Tomanovic accused Sayer of failing to meet financial obligations under an alleged written agreement between the two men, threatened Mortgage House with liquidation. This would have meant 40 home loan centres in NSW, Queensland and Victoria and $212 million worth of mortgage assets up for sale.

Speaking exclusively to Lending Central Sayer admits that although he remained confident throughout the “tiff” he was relieved it was over.
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By Jill Fraser for Lending Central

Mortgage House managing director Ken Sayer doesn’t discount a nation of renters, generation loans and the death of the great Aussie Dream as people get priced out of the property market.

Sayer foresees a “new order” determined by the cost and scarcity of funds and impending compliance charges.

“Interest rates will rise and the cost of funds to the borrower will increase as a result of the new order,” says Sayer.

“We may not see 13 percent again but we will get to 7 percent or 8 percent and this will automatically exclude a lot of consumers. The heat on property will retard, the explosive capital dance will disappear and it will become the norm to rent.

“Asian and old European nations have ‘generation loans’, which are never paid off and simply handed down to the next generation.”
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By Jill Fraser for Lending Central

Aligning with Federal Opposition criticisms Mortgage House managing director, Ken Sayer says the Government is wrong to take credit for an agreement by the four major banks to give mortgage relief to people who lose their jobs as a result of the global financial crisis.

Under a plan announced by Prime Minister, Kevin Rudd last weekend the CBA, Westpac, NAB and ANZ banks will postpone home loan repayments for up to 12 months, with interest to be rolled back into the loan, for people in hardship.

Rudd is claiming credit for the brokered deal with the banks but Opposition treasury spokesman, Joe Hockey said the scheme had been announced two weeks earlier by the CBA and the Prime Minister is simply capitalising on this.
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Will the Treasurer Wayne Swan’s plan to invest $4 billion into the home mortgage lending market to buy residential mortgage backed securities boost competition and mark the end of sleepless nights within the non-bank sector?

RESI’s Head of Marketing and Consumer Advocacy, Lisa Montgomery is today breathing a sigh of relief but remains wary cautioning, “the devil is in the yet to be disclosed detail”, while Mortgage House managing director, Ken Sayer admits to being rather jaundiced and not wanting to get too excited until the fine print has been released.
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