Refund Home Loans franchisees wait for any news of possible sale
The future of mortgage broking franchise Refund Home Loans and its 300 franchisees remain undecided five months after it collapsed as receivers remain quiet on a possible sale of the business.
An industry source told Property Observer current franchisees were growing increasingly frustrated at the lack of information from the administrator as they hold out for a possible sale.
It is understood that a group of franchisees who had expressed interest in buying the business have now backed out of a management buyout.
Property Observer has put in numerous calls to administrators SV Partners, but has not received any response.
In January it was reported that three businesses had submitted expressions of interest in Refund Home Loans, with Broker News naming one of the suitors as non-bank lender Liberty Financial.
A spokesperson for Liberty Financial said it did not comment on market speculation.
As a lender on Refund Home Loan’s mortgage panel, Liberty Financial would have good knowledge of the business.
Refund has a network of 300 brokers and would provide an instant distribution arm to a non-bank lender, but is unlikely to be appetising to a major lender because of its controversial business model.
As a result of the expressions of interest the court granted SV Partners an extension until March to secure a buyer or wind up the business.
Both Channel Nine’s A Current Affair and Channel Seven’s Today Tonight have run exposés about the collapse of Refund Home Loans.
Speaking on condition of anonymity, a creditor told Property Observer the exposés, particurlarly the more attacking one by ACA, might reduce the sale price of the business.
Today Tonight ran two stories, both including interviews with Ormond and portraying his personal loss (including having to sell his $500,000 Bentley) and featuring support from former Wheel of Fortune host John Burgess.
Refund Home Loans head office in Brisbane says Wayne Ormond has parted ways with the business.
Attempts to reach Ormond via his personal website have proved unsuccessful. The phone number on the site no longer works.