News

East Coast eases out

CEO of East Coast Mortgage Trust in Lismore, Scott Collis announced the beginning of the end of a rocky few years.
CEO of East Coast Mortgage Trust in Lismore, Scott Collis announced the beginning of the end of a rocky few years. Jay Cronan

EAST Coast Mortgage Trust has announced it will wind down its operation and close its doors after a bruising few years for the North Coast financial institution.

Mortgage Trust chief executive Scott Collis yesterday stressed the closure would be a gradual process designed to return as much money as possible to investors and allow mortgagors time to refinance.

Investors could expect to get at least 90% of their funds back. However, depending on how any property sales went, Mr Collis said that figure could be higher. Funds would be returned through a series of capital distributions starting from March this year.

The announcement comes after a rocky few years for the 51-year-old financial institution, starting in 2008 with the federal banking guarantee, which guaranteed lines of credit for banks and credit unions but not for mortgage trusts. The introduction of the guarantee and the global financial crisis meant many mortgage trusts around the country started freezing accounts, preventing investors from withdrawing their money.

Little had improved since, with Mr Collis noting the poor economic climate and the flat property market. As recently as August, the trust was still being rocked by difficulties, ranging from reduced interest payments and withdrawal freezes to concerns about a $4 million loan given to property developer Mario Girardo after he was committed to trial for extortion (he was convicted in August).

Looking back at the events since 2008, Mr Collis said there was nothing he could see the trust could have done differently.

"This (the global financial crisis) is essentially the worst economic shock in a generation," he said.

Mr Collis praised East Coast Mortgage Trust's board for making the best decisions for investors - even when that meant signalling its own demise.

Mr Collis was unable to say how long the "wind-down" would take, but said the board would remain actively looking after the business until the process was complete.

Topics:  business finance



Are killer whales cruising our coastline?

A killer whale like this one was reportedly seen by a fisherman off the coast of Ballina yesterday.

Sighting a "very special thing” says marine ecologist

Woman felt 'dirty, ashamed' over partner's abuse

Lismore Court House. Photo Cathy Adams / The Northern Star

"I thought I was going to lose my life to this person"

Police to soon analyse drug, alcohol test by roadside

NSW police breath testing drink driver.

No more driving to the station to await results

Local Partners

Joseph's biblical return to Ballina

BALLINA Players upcoming production is Joseph and the Amazing Technicolor Dreamcoat.

All the gigs you need to know about this week

HAWAII UKE: Aloha Baby is a trio consisting of steel guitar, ukulele and double bass with three-part harmonies based in Australia who specialise in Hawaiian music with Stukulele, Paul Steel and Roddy Rumba. They will be featured in this month's Uke Night which has a Hawaiian theme. Hula dancing from Hula Tomoka and her troupe (also in the picture) will be featured, too. At Club Mullum in Mullumbimby today from 6.30pm.

Comedy, music, theatre and more

When good neighbours become Splendid friends

FLOOD APPEAL: Splendour jn the Grass General Manager Elise Huntley with Mullumbimby Neighbourhood Centre community support workers Kim Shelley and Roberta Brooks. Splendour has donated $23, 022.42 to the centre after auctioning off special Flood Relief Gold Passes.

Everybody needs splendid neighbours.

Dreamworld may supersize with 'Disneyland expansion'

Dreamworld could become a “more attractive and entertaining park”.

World’s strongest man reveals incredible 12,000 calorie diet

Brian Shaw won his 4th World's Strongest Man title. Source: Twitter

World’s strongest man reveals incredible 12,000-calorie diet

ABC2 slammed over football exhibition match coverage

Fans weren't too happy with ABC2's coverage of Wednesday night's game.

ABC2 slammed for coverage of soccer exhibition match

'Bulls--t!' Lisa Wilkinson grilled over Karl's pay packet

Join us for a Great Night as we Proudly present Lisa Wilkinson

“And you believe everything you read?”

Work starts on supermarket, retail and cinema complex

Artist impression of the proposed redevelopment of the cinema and shopping complex on Jonson St, Byron Bay.

Mercato billed as regional NSW's most sustainable shopping complex

How Toowoomba house prices compare in Australia

For sale sign in front of home.

Here's what $700,000 will buy you in Toowoomba, Brisbane and Sydney

Slaves in Byron: The dark side of housing crisis

Housing generic.

A darker side to Byron's economy

Bonville to become new housing hub

REZONING: Large areas of Bonville have been rezoned for residential

Land rezoning will turn farmland into housing

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

Ready to SELL your property?

Post Your Ad Here!