GE Money's review of Wizard Home Loans may be confined to that lending business only, and not to other aspects of GE's home lending operations.
The advice sent from GE to third-party introducers yesterday said the strategic review, belatedly confirmed by management earlier this week, "only concerns Wizard Home Loans, GE Money's retail home loans business."
The review "will have no implications for GE Money Third Party Solutions" according to the note, circulated in the name of Mark Rice, managing director, GE Money Third Party Solutions.
Management of GE and Wizard reiterated these messages at the first of a series of briefings with franchisees held in Sydney yesterday.
GE Money chief executive Mike Cutter told reporters after that briefing that "What we are talking about in this restructuring is something which is solely confined to the Wizard brand and distribution channel," according to a report in
The Australian.
Mark Bouris, chair of Wizard, said: "Naturally, there may be some tension out there between the franchises and the organisation."
Bouris confirmed that new loans had been falling at Wizard since July last year, but said that was an industry-wide phenomenon.
Asked if he was a "natural buyer" for the business, Bouris replied: "If you are asking me whether I've got a cheque to withdraw for the purchase of the business, the answer is probably 'no'.
"But some sort of alignment with the business, yeah, in the future, probably makes a bit of sense."
Mike Cutter told
AAP that "We're very liquid but the cost of funds has had an impact on us as has the tightening credit market.
"These aren't things which are unique to GE Money or Wizard but have had an impact on the franchisees."