GE Money takes over Wizard Home Loans

[geoffw]

http://www.abc.net.au/news/newsitems/200410/s1229061.htmMortgage group Wizard Home Loans has been sold to finance company GE Money for an undisclosed sum.

GE Money president Tom Gentile says there is an excellent strategic fit between the companies, with GE Money providing credit cards, personal loans, car loans and retail finance and Wizard providing mortgages and a 230 branch distribution network.

The Wizard Home Loans brand will continue and the sale is expected to be completed by year's end.

GE Money is a subsidiary of the US giant GE.Any comment from those who know the market as to what sort of effect this might have?

[Rolf Latham]

Hiya GW

Probably not a lot, I dont know much about the market, per say,

Increasingly Wizard's main line business of securitsed home loans has come under attack, similarly to what happened to Aussie Home Loans.

They then moved to a second level broking business (if we cant sell you our own product then we can broker you someone elses).

GE have been mainly into the non-conforming mortgage market and Id agree that its a good addition to their business.

There have been rumours for a long time that Wizard wasnt making the $ for its owners that it should have and that it was on the table.

ta

rolf

[FatBoy]

An ex of mine was an Avco employee and then a GE Finance employee when they took over Avco. They (GE) have their fingers in a lot of finance pies and had expressed an interest in breaking into mainstream mortgages at several of their meetings. I guess this is the first step really... ;)

Cheers,
Paul...

[Mr Ed]

GE has bought Nissan Finance, AGC's book, Avco's book and now wizard. PBL who bought 25% into Wizard not so long ago will be rather chuffed with the sale.

Wizards story would be an interesting one considering he started it in 1999? was it.

[Rolf Latham]

Fridges, Jet engines, Medical Scanning machines and finance, you can see the common thread :O)

ta

rolf

[redwing]

Hi Geoff, from my recollection the Financial Review posted numbers associated with this deal..

Mark Bourkis would be one happy fellow, interesting to read about GE finances rise to fame in the article also -on the back of financing deals others put in the to-hard basket

REDWING