Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Lender to pull externally funded loans

mortgage house mortgage house
Charbel Kadib 3 minute read

A lender has announced that it will no longer offer credit products funded by third parties.

Non-bank lender Resimac has announced that it will discontinue its Resimac MoniPower and Resimac Accelerate products for new business, effective from 1 January 2020.

The changes mean the non-bank will exclusively sell loans financed by its own securitisation program, distributed under the Resimac brand via its broker network and via mortgage managers.

Following the announcement, Resimac CEO Scott McWilliam attributed the decision to a shift in market preferences amid growing demand for Resimac’s self-funded products.  

Mr McWilliam also thanked Resimac’s white label funders for their partnerships. 

Advertisement
Advertisement

“We are incredibly grateful to our business partners, including Adelaide Bank, Pepper, Advantedge and Macquarie, with whom we’ve had incredibly strong relationships over a long period of time. Our partnership with Adelaide Bank goes back more than 25 years, and we’ve been involved with Pepper for nearly 10 years,” he said.

Mr McWilliam added that such relationships would continue as Resimac would continue to manage its non-principally funded loan book, which totalled approximately $3.2 billion as at 30 June 2019.

Daniel Carde, Resimac’s general manager of distribution, added that the decision to discontinue non-principally funded products was a reflection of growth in Resimac’s presence in the market. 

Mr Carde stressed that mortgage management would remain a part of Resimac’s “DNA”, adding that the lender’s focus would now shift to funding mortgage managers rather than being a mortgage manager itself.

“Mortgage management is a vital sector of our industry, which encourages competition within the marketplace and provides borrowers and brokers access to a wider range of choice. Our partnerships with leading mortgage managers are a key component of our broader third-party distribution strategy,” he said.

The decision to end the Resimac MoniPower and Resimac Accelerate products follows the discontinuation of the Resimac Ultra Plus and Resimac Optima products for new business in October 2019 and June 2018, respectively.

[Related: Mike Jefferies to stand down from Resimac board]

Lender to pull externally funded loans
mortgage house
TheAdviser logo
mortgage house
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

more from the adviser
arrowup businessman ta Record number of mortgage brokers writing commercial

The number of mortgage brokers writing commercial loans has hit a...

catalyst Brokerage launches fundraiser for medical face masks

A Sydney-based brokerage that purchased and donated 30,000 medica...

NAB 1 850 NAB launches new SME offering

The major bank has announced the launch of a new funding facility...

FROM THE WEB