Improved funding and renewed confidence in the non-bank sector has seen an upswing in volumes for the mortgage management sector according to Australian First Mortgage.
After suffering a torrid two years the non-bank sector is beginning to see some growth retuning to volumes according to Australian First Mortgage (AFM) director of sales and marketing Iain Forbes.
AFM reported record settlements in August, September and October.
“We had a record month in August and then beat that month by $5 million in settlements in September,” Mr Forbes told Mortgage Business.
“However, we then beat September by $10 million in settlements and the forecasts for November already look positive.”
To cope with the record settlements, AFM decided to ramp up its staff numbers to include another five employees in NSW, Victoria and SA.
Mr Forbes credits the businesses rapid growth to improvements in the economy and a return in borrower confidence.
“At the beginning of the global financial crisis, borrowers were reluctant to trust the non-bank sector. However, since the acquisition of Challenger by NAB, I have seen a renewed sense of confidence in borrowers,” Mr Forbes said.
Support from brokers for the non-bank sector also remains strong.
The September Mortgage Business quarterly sentiment survey revealed that of the 377 respondents, 75.3 per cent expected that they would recommend a non-bank product over the coming quarter – up from 72.1 per cent the previous quarter.
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