Mortgages dry up for Liberty
Liberty Financial announced that normalised net profit after tax fell 3 per cent to $36.3 million in 2008. The cost of funding increased 13 per cent to $273 million. The lender's loans under management fell 6 per cent to $3.5 billion. New lending for mortgages fell 37 per cent, though Liberty did not spell out what this level of lending was. Impairment provisions increased 28 per cent to $17 million. In addition to lending for home loans (both prime, through Beat Home Loans, and non-conforming, through a network of mortgage managers) Liberty also provides car loans (often sub-prime) and commercial loans. Lending in these last two categories appears to have expanded over the financial year.
Source: The Sheet