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.
“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.