The John Kinghorn-founded RAMS Home Loans has fallen to an $18 million loss as parent company Westpac mothballs the business amid allegations of fraud and misconduct within its franchisee network.

Westpac all but shut down the mortgage broker and its small lending arm in August. While it will continue to service existing customers, RAMS was cut off from acquiring new borrowers, and its $31.8 billion loan book was moved to the bank’s own balance sheet.