Leading mortgage aggregators who maintained Banksia Financial Group on their approved panel of lenders are in the midst of dealing with the group's shock insolvency.
Banksia Securities was put under the receivership of McGrathNicol last week, after secured creditor The Trust Company acted on fears over the group's solvency.
Australian Finance Group, which maintained Banksia Financial on its panel of lenders, has indicated it is directing immediate attention to mortgage broker-sourced applications that have been approved and not settled or are currently being assessed or awaiting assessment.
Director of sales and operations Mark Hewitt told Australian Broker a number of non-bank panel lenders had stepped into the breach, with offers to assist in relation to these files in progress. He revealed there were less than five such applications.
Hewitt would not comment on the likely outcome for broker commissions on existnig loans, with administrators only appointed to Banksia Financial last week.
"It is too early to speculate but we are committed to keeping our members informed as the situation becomes clearer," Hewitt said.
Other aggregators had maintained and approved Banksia Financial, including Vow Financial.
Banksia Financial formerly encouraged commercial, industrial and rural property loan submissions from brokers up to the value of $10 million, funding its lending portfolio through a mortgage fund for investors. The administrators said $660m in funds are owed to investors.
The lender marketed itself as a niche funder without 'big organisation' processes, promising customers and brokers they were "dealing with a quality lender who is able to handle significant loan size and volume".