Yes secures half its trail income
GE Money must pay Yes Home Loans a minimum monthly trail commission of $40,000, a judge of the Supreme Court of New South Wales ordered at the end of last week.Yes sought injunctions against GE Money after the latter began to withhold a large percentage of payments from the Sydney-based mortgage manager several months ago in order to recover losses of $1.3 million over three delinquent loans.Yes is the manager of a book of 889 loans funded by GE, though Yes ceased originating for the lender a year ago.The mortgage manager told the court it was entitled to around $80,000 a month in trail income. Executives of Yes estimated in the court proceedings that the value of trail income over the life of the loan portfolio was worth between $1.6 million and $2.0 million.