Could RHG re-enter the Aussie mortgage market?
Article by Mozo
Mortgage lender RHG Home Loans could re-enter the Australian market after settling court actions against it, it has been claimed.
According to the Age, up to $10 million will be unlocked as a result of a recent agreement with UniCredit Bank, which had accused RHG of defaulting on a deal that underwrote the firm’s home loan book.
UniCredit Bank was also seeking indemnity payments from RHG, which could have cost the firm as much as $74 million.
However, RHG told investors yesterday that the actions had been resolved "commercially", which could mean the firm is preparing to resume trading in the mortgage market.
The firm still has billions of dollars of mortgages on its books but has not written any new loans since November 2007.
As a result of drawing a line under the legal wranglings, RHG hopes its bottom line will climb.
RHG lodged an appeal against the original judgement, which concluded that the company was in default, on December 18th.
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