NZF promises new products for brokers
NZF Group has promised new products for advisers as it looks to grow its share of the non-bank lending sector in New Zealand.
Thursday, October 27th 2011, 7:00AM
by Niko Kloeten
The group has had a tough couple of years and its subsidiary NZF Money was recently put into receivership, forcing NZF Group to include a loss on discontinued operations of $10.7 million for the current financial year.
However, its deal to sell a majority stake in its home loan business to Australian non-bank lender Resimac is nearly complete, and NZF Group chief executive Mark Thornton said the deal would mean good things for advisers who work with NZF.
He said NZF would look at producing new products for advisers after the deal went through.
"We want to deal with brokers on a volume basis – it's the 80/20 rule," he told Good Returns.
"However, we build such business by dealing with all brokers and they need a good range of products."
These products would include LMI (lenders mortgage insurance) covered mortgages and non LMI-covered mortgages, he said.
Thornton said the products would be mostly targeted at mortgage brokers, particularly in the major population centres.
He also said Resimac would bring valuable experience from dealing with its large force of advisers across the Tasman, where it has funded more than A$12 billion of mortgages.
Despite the slow housing market, Thornton was confident of growing NZF's share of the mortgage market whichever way house prices went.
"The fundamentals are not going to get any worse, and if it did we have such a small portion of the market we can almost disregard the trend.
"And in such a market the banks cannot lend as quickly as a non-bank lender."
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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