Deloitte, the receiver for Dominion Finance, has revealed the disastrous state of the property financier's loan book in its fourth report for investors. It now estimates a likely payout to investors of 10-25 cents in the dollar. Deloitte said 42% of the loan book was secured over apartment developments, 15% over developed sections outside main centres and 10% over undeveloped land. Over 80% of the loans were second mortgages or lower ranking mortgages and 78% were in default. The full report here details the shocking state of the loan book and exposes some of the dodgiest lending activity that went on in the property development sectors through 2005, 2006 and 2007 by finance companies. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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