Non-bank lender Homeloans Limited completes purchase of Refund Home Loans network and with 54 brokers signing up

Nine months after being placed in administration, Wayne Ormond’s Refund Home Loans mortgage broking franchise has been sold to ASX-listed non-bank lender Homeloans Limited, administrators SV Partners have announced.

The sale to Homeloans Ltd was foreshadowed by Property Observer in May.

Homeloans Ltd will acquire the Refund mortgage book, distribution network and other selected assets of the business.

Fifty-four former Refund franchisees have commenced operating as Homeloans mortgage brokers and will also receive a “substantial amount of the commissions owing to them by the old Refund business”.

When placed in voluntary administration, Refund had total debts of around $10 million and around 250 mortgage brokers operating Australia wide.

Administrator, David Stimpson of SV Partners, said the sale to Homeloans Ltd was the best possible outcome for everyone involved.

“The completion of the sale will result in a substantial return to Refund’s franchisees as well as a 100% return to employees and the company’s financiers.

“The trade creditors will also receive a return, however it will be sometime before this return amount can be calculated,” he said.

“We appreciate that the administration has been tough for many people, however the final bid by Homeloans provided the best result for all stakeholders, including franchisees, employees and trade creditors. The sale also ensures that a substantial part of Refund’s business will continue, albeit under the Homeloans banner,” added Stimpson.

“This transaction fits perfectly with Homeloans’ strategy to expand through organic growth and acquisitions,” says Scott McWilliam, Homeloans’ general manager funding and investments.

“We are excited about this outcome, which is a mutually beneficial result both for former Refund franchisees who were seeking to align themselves with a respected brand, and for Homeloans, which is seeking to grow its distribution network. We look forward to working with these new loan writers, who are based around Australia.”