Mortgage originators / brokerage companies can rest assured that their client lists can be safeguarded through restraint of trade clauses after the decision in Dargan Financial Pty Ltd ATF the Dargan Financial Discretionary Trust (trading under “Home Loan Experts”) v Nassif Isaac(1). They must, however, make provision for who owns the client information in their agreement, …
Home Loan Experts v Nassif Isaac [2017] NSWSC 1077 Read More »
The question for the court was whether the broker was entitled to its structuring fee on a mandate for a loan not ultimately advanced. The loan did not proceed because the offer was for 55% of the current market value of the properties and that amount was insufficient to refinance the existing loans. The terms …
The brokerage agreement contained a charging clause that read as follows: In consideration of the Lender approving the Loan to the Borrower, the Borrower hereby agrees to pay the structuring fee to KWS Capital Pty Ltd and hereby specifically charges their interest in the properties to secure payment of the structuring fees and costs to …
The owner of land granted a charge over it to secure brokerage. The broker sought an extension of its caveat which was opposed by the owner’s co-developer of the land. The law is that the court must determine whether the caveator’s claim “has or may have substance” under section 74K of the Real Property Act …
A solicitor agreed to introduce a borrower to a lender in return for a 5% commission. The borrower in question was the Republic of Nauru. The loan they were attempting to refinance was the very sizeable sum of $211 million Nauru owed to GE Capital. The solicitor set up a meeting between the lender and …
Mitry v Business Australia Capital Finance (in liq) [2010] NSWCA 360 Read More »
In this case White J, as Duty Judge in Equity, determined an application for an interlocutory injunction by a mortgage originator, CB Direct, against a loan funder, Challenger. CB Direct argued that a purported termination of the origination agreement was invalid and sought a mandatory interlocutory injunction that Challenger pay trailing commission due for the …
CB Direct v Challenger Mortgage Management [2009] NSWSC 334 Read More »
In this case CT Money, a mortgage originator and manager, purported to purchase the loan book off DC Corporation Australia, the wholesaler being AFIG Wholesale Pty Ltd. Upon being notified AFIG began to pay DC’s commission direct to CT. CT entered into its own correspondent deed with AFIG and began to write loans. Time went …
In this case the wholesaler (Interstar) terminated its agreement with the originator (Integral). The originator fee payable under the agreement constituted both the commission and management fees. The agreement did not distinguish between the two, but did provide that if the agreement was terminated the originator would still be entitled to the trail less the …
Interstar Wholesale Finance v Integral Home Loans [2008] NSWCA 310 Read More »
This was a dispute about loan brokerage secured by caveats. The issue before the court was whether the broker was entitled to brokerage of $12,485 or alternatively whether the borrower was entitled to the return of $3,300 which was paid in advance pursuant to the brokerage agreement. Associate Justice Bryson held: …unless there was some …
Yes Home loans & a related company have been receiving approx $80,000 a month in trailer commission from GE Money. On 9 July 2008 GE withheld 75% of the trail “as per legal advice”. This came about because some of the originated loans had gone bad and Genworth had refused to make up the shortfall. …
Yes Home Loans v AFIG Wholesale [2008] NSWSC 1017 Read More »
