CBA steps in to avert forced home sales of Storm Financial clients
The Australian Financial Review (AFR) is reporting that the Commonwealth Bank of Australia (CBA) is working with the former clients of Storm Financial to avert forced sales of their homes due to an inability to repay their mortgages.
The AFR reports that a taskforce of bankers from CBA is consulting with hundreds of victims of the collapse to settle outstanding margin loan amounts.
The AFR said bank officials are believed to have approached investors with a proposal that would allow them to stay in their homes for the rest of their lives. The clients’ loans would be effectively frozen, with no additional interest or charges, the article states. The bank would then collect on the outstanding loan on the death of the homeowner.
The article said it is not known whether the offer is being restricted to elderly investors. It goes on to say that a CBA spokesperson had confirmed that the bank was trying to find solutions for those affected, but would not confirm the details on any freeze on loans.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
