We have compiled a list of frequently
asked questions and hope this gives you the additional information
you seek.
If you have a question that is not
answered here, please contact us on 0508 2468 37 or email your
question for a prompt answer.
A) The contributory mortgage regulations are designed to protect
the interests of the contributors (investors).
The regulations prescribe the way that information must be
presented to intended investors to allow them to assess a potential
investment.
Contributory Mortgage Investments are defined by the Securities
Act (Contributory Mortgages) Regulations 1988. The Regulations are
administered and enforced by the Financial Markets Authority
(FMA)
A) No. All security offered to investors are only against property
and secured by a registered first mortgage over the land and
buildings.
A) Your investment is secured by a Registered First Mortgage; just
like a bank would take when they lend money on a mortgage.
A) Should the borrower default on
their payments we have set management procedures we
follow.
We take immediate action to bring the
payments up to date followed by legal action that is entitled to be
take under the mortgage agreement should the payment not be brought
up to date within 30 days. We keep you informed of the process
throughout.
Interest payments are dependent upon
payment by the borrower although in some circumstances SCFL
Management Ltd may continue to make the monthly interest payments
to you.
We can also exercise the right to sell the
property. Mortgage Securities will only be released when ALL monies
have been received to enable full repayment to Investors.
A) Our preferred borrowers are present homeowners or rental
property investors.
These families and individuals have existing equity in their homes
and require short term funding for a wide variety of reasons.
After a period of time they may be in a position to return to
mainstream bank lending or have sold the property.
A) There are many different circumstances that the banks have
become very unsympathetic to and will not lend if their stringent
criteria cannot be met.
For various reasons the self-employed or people who have had
unforeseen financial setbacks along with elderly people needing to
downsize can find traditional bank funding very hard to
obtain.
Southern Cross Finance Ltd provides the short term solution to
help everyday New Zealanders over their hurdles.
A) Southern Cross Financial sources 98% of their borrowers through
a network of Mortgage Advisor's.Most borrowers are referred to us
because they have a need for funds and their advisor has
ascertained that they would be unable to qualify for bank funding
at that time.
A mortgage advisor must discover what the borrowers needs are and
source a suitable solution. The advisor gathers information about
the borrower and sends to Southern Cross Financial to assess the
application. These include a statement of the borrowers financial
position, employment details, credit check and I.D.
In most cases Southern Cross Financial is used as a short term
solution until the advisor can place them with a main stream
lender.
A) The borrower is unable to pay and the
property is sold at mortgagee sale; because the mortgages offered
to investors remain at a maximum of 2/3rds of the value of the
property, we ensure there is enough equity to realize the full
amount of the secured mortgage funds.
A) The auditors of the Southern Cross Group are Staples Rodway,
Auckland who are part of a large multi-national accounting network.
Staples Rodway are required to examine the accounting records
quarterly and conduct an audit annually.
A) Prospective investors are provided with the following;
• A copy of the registered valuation report
• The interest rate and term of the mortgage.
• Relevant information about the borrowers.
• Information on the contributory mortgage broker (SCFL Management
Ltd) and fees paid to the broker.