Mortgage broker out of business

A Securities Commission crackdown on contributory mortgage schemes has resulted in one firm being closed.

The commission announced yesterday that it had ordered Christchurch-based NZ Commercial Mortgage Brokers to cease acting as mortgage brokers.

The commission also removed the directors of the firm's nominee company, Bryn Vincent Evans and Jefferson John McIntyre.

Another order prohibits the firm from offering contributory mortgages to the public for the next five years.

The commission said investors' funds were at risk because the firm continually failed to keep proper accounts, failed to lodge an annual report and failed to tell investors about a significant change to the terms of a mortgage.

Last month, the commission warned investors to be careful before putting money into contributory mortgages, saying it was looking into the affairs of nine of the country's 21 contributory mortgage schemes.

Commission chairman Jane Diplock said yesterday that some firms were still being looked into.

Christchurch chartered accountants David Crichton and Keiran Horne will administer NZ Commercial Mortgage Brokers' remaining mortgages.