Embattled broker resigns from NZMBA board

Sue Tierney resigned from the board of the New Zealand Mortgage Brokers Association (NZMBA) yesterday.

Wednesday, February 24th 2010, 4:11PM 6 Comments

by Jenha White

NZMBA chairman Darren Pratley says the board has completed an inquiry around claims made about Tierney in the media.

Last month it was reported that Tierney had liquidated her company and created a new one under the same name which left a court-ordered debt relating to trail commissions, behind.

Pratley says the NZMBA board has had an opportunity to consider the information received to date and correspondence obtained by the board, and it has concluded from that information, that no issues have arisen that would cause the board to review Tierney's membership.

"However, given the public nature of this dispute, Sue would prefer to lessen the spotlight on her and her decision to resign is largely a result of this."

The board says it understands the reasons for Tierney's decision to resign, and supports her maintaining her full membership with the NZMBA.

"We thank Sue for her contribution to the NZMBA board and the industry to date."

Tierney is the president of the Auckland Property Investors Association, founder of Mortgages by Design and she was the winner of the Mortgage Broker of the Year Award in 2002.

Tierney changed Mortgages by Design's name to PIN two weeks before placing the company into liquidation on December 23, 2009.

On the same day as the name change she also formed a new company called Mortgages by Design.

Both companies had the same registered address and ownership structure.

The liquidator's report by Meltzer Mason Health for PIN states the company (formerly Mortgages by Design) had debts of $421,895 and no assets.

"The company traded as a mortgage broker and was subject to a claim by a former contractor. Ultimately the court found in favour of the claimant, however the company is not able to meet the debt awarded by the court. The shareholders concluded that the company be placed into liquidation," the report said.

This made many headlines in the Sunday Star Times, Herald on Sunday and some specialist websites.

Tierney didn't wish to comment on her resignation. She told Good Returns that she doesn't understand why mortgage brokers would care about her decision.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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Comments from our readers

On 25 February 2010 at 9:37 am anon said:

Where's the backbone of the NZMBA? This is clearly unethical behavior by a former “mortgage broker of the year”.

If we, as members of the NZMBA, stand by and say it's okay for her to continue to be a member, then it brings the whole reputation of the association into disrepute. I will reconsider my membership to the NZMBA as I'm sure many others will this year also.

On 25 February 2010 at 10:17 am Alan said:

NZMBA are gutless. The name change and liquidation of the new old company seems to be premeditated. How can the NZMBA not see that? If a young brown skin kid climbs through your window and pinches your TV he ends up with a criminal record. If a business person goes out of their way to avoid paying money owed, even when directed by a court of law, thumb your nose and move on. Simon Power where the hell are you? We have to belong to the NZMBA or PAA because of regulation which is fine, but what's their core business and who is their gate keeper?

On 25 February 2010 at 1:31 pm tully wiseacre said:

I am amazed at NZMBA that they support Sue Tierney's continuing full membership of the NZMBA - it beggars belief and does not bode well professionally for the so-called regulatory body for mortgage companies to take this stance. Sue Tierney should be told by the NZMBA that her lack of business ethics means she is not allowed to continue membership surely?

On 25 February 2010 at 4:09 pm Steve Blakeley said:

White Collar crime is a festering sore in NZ. Supposed "do-gooders" like Bernard Hickey who lambast investors for there love affair with property are wasting there hot air until the Government and other regulatory bodies tighten up on the whole financial services space then ordinary Mums and Dads will avoid finance companies or the sharemarket and stick to bricks and mortar. Sue Tierney has destroyed any credibilty she ever had ... the NZMBA is in danger of doing the same!

On 25 February 2010 at 4:12 pm Mike said:

This sort of spineless behavior from a ‘trusted’ financial advisor is completely unacceptable, and should be not be tolerated by the industry nor its regulatory bodies. How can any future client have faith in Ms Tierney advice, when she has so clearly acted in a deceitful and dishonest manner with her own business dealings? To think for a second that her actions were not intentional and premeditated is ludicrous.

It is disappointing (however frankly, not surprising) that the NZMBA has taken no action against Ms Tierney. The irony of course is that the NZMBA considers itself a suitable body to help direct and regulate the industry moving forward. How can the Association promote a brand which is centered on trust and ethics, when they clearly don’t have the balls to terminate the membership of a broker who has so blatantly acted in an unethical way? I would suggest that it is only due to Ms Tierney’s’ history with the Board that she is still able to maintain a membership in the association – however this is by no means an acceptable reason for her actions to go without consequence.

I urge Darren Pratley to step up and appropriately represent the industry principals, and direct to the board to give further consideration to Ms Tierney’s actions. If not, no intelligent broker (or consumer) will hold value in an association which holds no value in its own creditability.

On 25 February 2010 at 5:02 pm Name supplied said:

There may well be two sides to this story, but the facts that we do have, clearly show unethical behavior. If there is a defence to this, it should be made known as while it is left unsaid the NZMBA's credibility is at risk. Until this matter is clarified, our NZMBA subscription fees should go in support of a more credible agency.

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