RAMS Home Loans today confirmed that it will exit the broker channel effective 26 February 2010.
According to RAMS chief executive Melos Sulicich, the recent slump in broker activity was the main driver behind the lender’s departure.
“Following a review of the options available to manage lending growth it has become clear that pursuing a dual distribution model in the current environment is not the best use of our resources. As a result, RAMS Home Loans has today taken the difficult decision to close its broker distribution channel,” Mr Sulicich said.
“The decision to withdraw from the broker channel was not taken lightly but it is important that we align our time and resources to the activities that add the most value to our customers. We’re convinced that focusing on the franchise network is the right structure for RAMS and we are committed to growing and developing the franchise business.”
RAMS spokesperson Paul Smith told The Adviser that the lender will send an email to aggregation heads later today informing them of the change.
“We will send out an email that runs through what exactly is happening; RAMS head of operations Tony MacRae will then speak with each aggregation head individually and answer any questions they might have,” he said.
“Nothing will change for pre-existing customers. However, any customer that wants to refinance with RAMS will not be able to do so through their broker.”
Effective from today, RAMS will also change the pricing on its full doc loan, reducing its loan-to-value ratio from 95 per cent to 85 per cent in the broker channel.
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