Wizard Home Loans Maybe on Sale

Submitted by Craig Strzelecki on 26 May, 2008 - 11:41

GE Money plans to put up mortgage lender Wizard Home Loans on sale. It has been attracting lot of criticism for accumulating debt and its insurance business practices. GE Money shall announce the sale on Wednesday at the New South Wales state franchisee meeting in Sydney.

Its previous owner and founder, Mark Bouris, has been trying to regain control over the company since past three months. GE Money seeks an alternative buyer to counter Bouris’ offer. Wizard network currently sells around 2.5 percent of Australian mortgages through franchisee network of about 200 branches. However, the sub-prime crisis and higher interest rates have triggered the alarm bells at the Wizard. Several branches have been forced to shut down and the company has been ailing now since past one year. 30 of the branches have already closed in spite of GE Money’s plans to expand its network and revive the business.

Mark Bouris and another founder of Wizard Home Loans, James Packer, sold the company to GE Money about four years ago. However, Bouris had stayed with the company as the Chairman to be the face of the company.

Sources close to the NSW franchisee say that Bouris expects GE Money to pump millions into the company so that he can regain control of Wizard Home Loans and later he can sell the same at an IPO when market conditions improve. Mark Bouris proposes to put Wizard under one structure called as One Corp. His business entity State Capital Corporation would hold stake in the new business entity along with GE Money and other shareholders.

Wizard currently comprises of one of the largest non-banking network of lenders for mortgages and home loans. Lately, GE had implemented tighter credit policies, owing to the sub-prime crisis in the US. This had dulled the competitive edge of Wizard and market share had been readily grabbed by the competitors. Thus, dissatisfaction from the franchisees and lower profits had prompted GE Money to consider other options including sale of the business.

Well, well, Good Riddance is

Well, well, Good Riddance is what I am sure most staff who had to deal with the Wizard arm of the company after it was purchased will be saying - The Branches and the business when GE bought it were run by a bunch of cowboys and to be honest if it wasnt for GE you would have seen Wizard die long before rams did. Culturally they are a bad fit for any business and any bank that takes them on hahahahahahahahahahahaaaaaaa. Bouris has done nothing but pick up a paycheck since GE took over- and the business including both the franchises and the Wizard people who were thier when GE took over have done nothing but stop GE trying to make any changes or attempts to make the business more profitable or the franchises more profitable - and of course the bigger franchises will be trying to keep it going as they suck the cash from the smaller ones.

GE Money will do the smart thing get rid of the millstone around thier necks which is the Wizard Branch network - keep the backend business including the 3rd party branded mortgages and GE Moneybranded mortgages which are a profitable future - and in getting rid of the wizard brand the strangling horrible culture that goes with that place .

Wizard is set to fail as it

Wizard is set to fail as it is run by mum and dad franchisee operators with little or no real fiance sense. They are after a fast buck not really giving a hoot about their clients long term satifaction. They are after the the first upfront commssion hit, all brokers are set to fail when they are looking after their best interest firstly and foremost.

Know a franchisee and the are the money hungriest person I have met in my life, this person is looking after your most valuable asset?

You need to be prepared to offer good service, quality products the right product for your client to ensure their success and ulitmately yours. Most of the franchisees do not look at the long term picture.

Unfortunate, as it was a great idea just needs to be run by a company with employees not franchised.

Wizard advise come back to

Wizard advise come back to bite them.

In 2007 they says be aware of cheap credit card but they went ahead and rise the interest on there credit card so which one is to look out for.

Is sad to say that the market will not always steady so advise is not the same always if the boat is keep floating.

The questions is why would

The questions is why would you invest to other-part of the world if
you know that the otherside is struggling of your business.Would you think that is a good move or not.

If you are passion about your business as wizard.Why cut some rate and rise up some dont you think is unbalance for the customer.

There seem like that wizard is the same as the bank? It is good that execution is good but not in a way of causing other customer to suffer.

To me there are no morals there at all.Which is best for you keeping the customer or making profit?