Virgin Money ?unaffected? by Macquarie?s exit

Staff Reporter Monday, 10 Mar 2008 1 minute read

Despite shutting the doors on its mortgage division, Macquarie Securitisation Limited (MSL) has vowed its partnership with Virgin Money will continue.

“Since the onset of the credit crunch in August, our volumes have slowed down in line with forecasts,” a Macquarie Bank representative told Mortgage Business.

“We are winding back our mortgage origination services, however we will continue to fund existing contractual agreements and service existing customer requirements.”

The bank described the action to scale back origination as an “appropriate response” consistent with market conditions.

Virgin Money, solely funded by Macquarie Bank as part of a joint venture, was also quick to stress that the group would continue to receive funding.

“It is business as usual,” Virgin Money CEO David Wakeley said. “Macquarie will continue to be our funding partner for home loans and will continue to fund Virgin Money Home Loans for new customers.”

Mr Wakeley said that Macquarie’s recent announcement “has no impact on Macquarie’s shareholding in our business”.

He added: “The MSL and Virgin Money Home Loan relationship is unaffected by this announcement".

Published: 10-03-08