Administrators of collapsed mortgage broker Refund Home Loans are expected to sign a contract in the next few days to sell the business to State Home Loans.
A letter sent to franchisees by the administrator and seen by Broker News states that an offer has been received from State Home Loans.
Under the conditions of the sale, as many franchisees “as possible” are required to continue to operate under the existing franchise agreement, but the new owner is not liable to for any debts to owed to franchisees including lender commissions or any breaches of franchise agreements by Refund prior to the sale.
As part of the agreement, the franchisees’ loan book will be transferred from Choice Aggregation Services to an unnamed aggregator.
ASIC information shows State Home Loans received a credit licence in January 2011.
Refund Home Loans collapsed in October last year.
This article first appeared on Property Observer.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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