NZF Group (NZF and NZF010)

[Enumerate]

$1 billion of NZ mortgages sold

http://www.stuff.co.nz/business/mone...mortgages-sold

[minimoke]

$1 billion of NZ mortgages sold

http://www.stuff.co.nz/business/mone...mortgages-sold

Are you suggesting NZF was the seller?

[Enumerate]

No, this story may be of interest because it demonstrates:

1) There is a market for RMBS; and
2) GE Money is no longer a domestic competitor

If NZF do announce a solution to the NZF Money retail debenture funding issues, through the new partnership; there does a appear to be a market in packaged mortgages.

[invessi]

3 ¢
(nzd) 0.7 30.4%

27/05 10:31 nzt

3 2.4 5 3 3 3 10,095 $303

[minimoke]

3 ¢
(nzd) 0.7 30.4%

27/05 10:31 nzt

3 2.4 5 3 3 3 10,095 $303

Yup, a $303 trade. Peoeppl don't like bernard Whimps approach to trading shares. But a 30% movement off the back of a $300 trade is hardly kosher.

[Enumerate]

NZF Final Year Result to March 2011

http://www.nzx.com/markets/NZSX/NZF/...al-Result-2011

Declared loss of $4.767 million - suppose this is in line with the NZF Money impairments (signalled to be about $4m) and the Finance Direct loss on sale (revealed as about $1m).

Haven't reviewed the numbers, yet ...

[invessi]

Oh, so they are lending then!

NZF limiting new loans to $750,000

NZF Group is limiting new loans made by its troubled property finance group to a maximum $750,000,
Friday, June 3rd 2011, 7:29AM
by Jenny Ruth

"This should ensure that significant loan impairment allowance movements and bad debt costs are restricted in future and ultimately result in NZF's property finance division returning to profitability," says chief executive Mark Thornton.

The division's $5.1 million in loan impairment and bad debt costs resulted in NZF Group reporting a $4.8 million net loss for the year ended March.

"NZF's experienced lending team continues to work with all of its borrowers to achieve recovery of all outstanding loans. Whilst there are still a couple of large property finance exposures that remain within NZF's loan portfolio, we believe that we have been prudent with our loan impairment allowance calculations," Thornton says.

NZF's home loans division's pre-tax profit fell 39.4% to $2.5 million in the year and Thornton says that was mainly due to changes in the Reserve Bank's official cash rate impacting the value of interest rate swap contracts and higher funding costs of its $100 million in securitised mortgages than the Westpac warehouse facility. The $84.6 million in secured notes on NZF's balance sheet relate to that securitisation last year which was the first in New Zealand since late 2007.

NZF's financial services distribution operations, which include 50% of the Mike Pero Mortgages broking business, saw pre-tax profit before last year's goodwill write-down fall to $187,000 from $421,000.

Thornton says the main factors include the slow housing market and mortgage lending in generally, a reduction in income generated from the Huljich wealth management Kiwisaver scheme and set-up costs connected with Mike Pero Real Estate which will start to generate income in 2012.

Thornton didn't answer a question on whether NZF is making progress on its efforts to bring in new equity.

[Tony Two Gloves]

Bit hard to lend to much when you only have $5M in cash according to the accounts, still no update on potential partner no surprise there! I could have answered the question for Me Thornton - there is no partner willing to do a deal with us where we are not getting completely scewed over.....

Pretty poor result on the back of last years poor result, Pero's only marginally profitable, huge w/off for Finance Direct and confessions of other large property finance exposures. They need to recognise the mistakes made by their "experienced lending team". Equity won't last much longer at these loss rates.

[invessi]

TTG, hopefully this will put a smile on your face!!

NZF
03/06/2011 13:37
GENERAL

REL: 1337 HRS NZF Group Limited

GENERAL: NZF: NZF Group Limited (NZF) - Continuous Disclosure

The Directors of NZF Group Limited are pleased to announce that the due
diligence process with potential business partners has reached a stage where
we are now confident of a successful outcome. As a consequence, the Home
Loans Division will resume origination activities under its committed Westpac
Warehouse Facility. Origination activities were suspended earlier this year
when negotiations with new business partners commenced. Westpac has been
privy to these negotiations and have agreed to renew the current Warehouse
Facility of $225 million until 18 October 2012 on similar terms and
conditions.

ENDS
End CA:00209873 For:NZF Type:GENERAL Time:2011-06-03 13:37:51

[minimoke]

From Invessi on 3 June

The Directors of NZF Group Limited are pleased to announce that the due diligence process with potential business partners has reached a stage where we are now confident of a successful outcome. .............

And still we wait.