ISCOVER
The Mortgage Ezy Group has become a fully securitised lender, enabling it to have more control over its lending solutions.
Non-bank lender and mortgage manager Mortgage Ezy has become a fully securitised lender, after achieving residential mortgage-backed securities (RMBS) status.
The move comes after Mortgage Ezy launched Source Funding under the group in 2022. With the lender having now reached its three-year anniversary, it is now able to gain a credit rating essential to tap into the capital markets.
Backed by two domestic and one international warehouse – with active discussions said to be underway with other financial institutions and the rating agencies – the Mortgage Ezy Group now stands independent from external funders’ service-level agreements and credit criteria.
The group now only relies on banks to provide the warehouse facilities that facilitate its own loans, which will be securitised in the company’s bond issues, to be known as the Pearl series.
Source is reportedly preparing to launch its inaugural bond issue later this year, bringing fresh capital to fuel growth and expand its lending capability.
The group said becoming fully securitised would unlock greater agility and enhance service delivery for brokers and borrowers alike as it would enable it to continue to “fill the gaps that banks leave behind”, such as self-managed super fund (SMSF), expat, and alt doc loans, while innovating and streamlining policy and processes.
Peter James, Mortgage Ezy’s managing director, commented: “Having settled more than 1 billion dollars of loans in our own program isn’t just a win for the Mortgage Ezy Group – it’s a win for Australian borrowers and brokers overall.
“We’ve worked tirelessly behind the scenes for years, and now that we have full control to tailor lending solutions that genuinely reflect the needs of everyday Australians, the group anticipates funding more than another half a billion dollars this year and has capacity to fund even more.”
Mick Conyngham, head of operations and credit, added: “Being a securitised lender means we’re no longer beholden to third-party policies or timelines.
“Our team can finally take a truly common-sense approach, cutting through unnecessary red tape and focusing on what matters – speed, service, and sensible lending.”
Mortgage Ezy’s head of distribution Vlad Murphy-Mulcahy told The Adviser that the move was “a watershed moment for distribution partners”.
“Brokers want flexibility and transparency, and Mortgage Ezy now delivers that in spades,” he said.
“Source funding and our ‘no clawback’ policy is just the beginning – we’re building a future where brokers are empowered to grow their businesses without compromise.”
The lender said it hoped that its move to become fully securitised and take greater control of its service proposition would result in it being appointed to more aggregator panels, thereby “expanding access for brokers across Australia and enabling more clients to benefit from its specialist products and common-sense lending philosophy”.
[Related: New non-bank lender launches]
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