GE to sell off remaining mortgage portfolio
(26 May 2011 – Australia) GE Capital is close to selling the remaining A$5 billion portfolio of mortgages, with a range of possible buyers mention in connection with the sale.
Some of the major banks are included, as well as various non-bank lenders and private equity operators.
One source said the GE portfolio was likely to split between several buyers – the loans range from high-quality home loans to low-doc lending and riskier mortgages with high loan-to-valuation ratios.
GE would not comment on what it called "industry speculation" and neither would Commonwealth Bank (CBA) or National Australia Bank (NAB).
Almost three years ago in December 2008, Aussie Home Loans bought the Wizard Home Loans brand and franchise network in Australia for a fraction of the A$400 million GE had paid in 2004, CBA also emerged with a A$2 billion portfolio of mortgages which also originated from Wizard.
One source said the GE portfolio was likely to split between several buyers – the loans range from high-quality home loans to low-doc lending and riskier mortgages with high loan-to-valuation ratios.
GE would not comment on what it called "industry speculation" and neither would Commonwealth Bank (CBA) or National Australia Bank (NAB).
Almost three years ago in December 2008, Aussie Home Loans bought the Wizard Home Loans brand and franchise network in Australia for a fraction of the A$400 million GE had paid in 2004, CBA also emerged with a A$2 billion portfolio of mortgages which also originated from Wizard.
Subscribe