A non-bank lender has re-entered into the broker space after a 10-year hiatus, expecting to fully launch by the end of next month.
Speaking to The Adviser, the general manager of non-bank lender Mortgage House, Sean Bombell, confirmed that it was re-entering the broker space after pulling back from the broker market during the global financial crisis (GFC).
Mr Bombell said: “Ten to 15 years ago, we used to heavily deal in the broker space, but the GFC put us in a different direction.
“Now we’ve built the retail brand up, and I think it is an opportune time now to help the broker community with their businesses and their customers with what has happened in current times.”
The GM elaborated: “The last 12-18 months, with the banks and the way that responsible lending and commission talks have impacted credit has impacted the broker space.
“We’ve been watching the space for quite some time, even before the royal commission came into play and now is the time to re-enter the broker market.”
While the non-bank lender said it was “early days”, and would be first targeting brokers with Australian credit licences, the GM suggested that the lender would be looking to fully launch into the broker channel via aggregator partnerships ”at the end of February”.
The first aggregator partnership that Mortgage House has already secured is said to be with outsource financial.
The non-bank lender revealed that it was also looking at building a scenario tool to help brokers understand what qualifies as a Mortgage House loan.
Mortgage House is looking to primarily corner the prime lending space and offer an alternative to the “big banks”, Mr Bombell told The Adviser, adding that it would also “look at things from a solutions-based approach so that it can help with transactions that do fall outside that prime space”.
“Mortgage House has really put a footprint out there in relation to being a prime lender in that retail space and has a fantastic brand to do that. So, hopefully, that will help brokers when they are talking to their customers in that they are able to leverage off that brand in providing that alternative to those big banks,” he said.
He concluded: “We look after all types of loans – owner-occupiers, investors, self-managed super fund loans (which a lot of lenders have pulled out from) – so we are really providing a full gamut to that broker market in relation to helping their businesses and their customers.”
Annie Kane is the editor of The Adviser magazine, Australia’s leading magazine for mortgage brokers.
As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also the host of the Elite Broker podcast and regulator contributor to the Mortgage Business Uncut podcast.
Before joining The Adviser team at Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.
The managing director of a non-major bank has expressed concern o...
The banking royal commission has provided renewed interest in the...
Faris Dedic, broker and director of Red Door Financial Group and ...