Finance company group NZF announced Westpac had given it a 60 day waiver for a breach in the requirements for NZF Mortgage's NZ$200 million lending facility with Westpac. The breach followed Moody's decision to cut mortgage insurer Genworth's credit rating below the facility's Aa3 threshold. NZF has insured all its mortgages through Genworth, which had its rating cut on Friday because of problems handling the collapse of housing values in the key United States market. NZF's insurance is for 100% of the capital and one year of cashflow. NZF CEO John Callaghan told interest.co.nz NZF was confident Westpac would renew the facility and had not received any indications so far from Westpac of problems renewing it. The facility is due to expire in October this year. NZF had used around NZ$160 million of the NZ$200 million facility, Callaghan said. * 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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