Non-bank lender Pepper Money has confirmed it is part of a consortium that is in talks to buy the RAMS portfolio from Westpac.
ASX-listed lender has confirmed that it is part of a consortium in discussions to acquire the RAMS mortgage portfolio from Westpac, following the closure of the RAMS franchise network last year.
The shuttered RAMS brand was closed in 2024 following widespread compliance failures, which resulted in $20 million court penalty imposed on the brand last month for home loan compliance failings.
In a statement to the ASX on Thursday (30 October), Pepper Money confirmed it was one of several parties in negotiations with the major bank regarding the potential purchase.
“Pepper Money confirms that it is part of a consortium which is in negotiations with Westpac in relation to the potential transaction,” the lender said.
“The negotiations are preliminary and incomplete, and no agreement has been reached. There is no certainty that agreement will be reached or that the transaction will eventuate.”
The announcement follows a report in The Australian Financial Review suggesting that Pepper was eyeing the acquisition of the RAMS loan book as part of a consortium deal.
Neither Pepper Money nor Westpac has disclosed the value or size of the potential transaction, though Westpac’s previous sale attempts of RAMS in 2024 were estimated to involve several billion dollars’ worth of home loans.
There has been no further comment on the consortium partners or the timeline for the potential transaction.
If the acquisition proceeds, it could mark the final chapter in Westpac’s gradual exit from non-core businesses — following previous divestments in wealth management and institutional operations — as the bank continues to simplify its structure.
RAMS wind-down and compliance issues
The confirmation of renewed sale discussions comes just days after the Federal Court ordered RAMS Financial Group (RAMS) — a wholly owned subsidiary of Westpac — to pay a $20 million penalty for systemic compliance failings in arranging home loans.
The court found that RAMS breached its obligations as an Australian credit licensee and contravened the National Consumer Credit Protection Act between June 2019 and April 2023, including:
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Dealing with unlicensed referrers.
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Failing to have adequate arrangements to manage conflicts of interest.
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Failing to supervise representatives and enforce proper compliance policies.
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Failing to ensure its credit activities were conducted efficiently, honestly, and fairly.
The breaches included cases where franchise staff submitted falsified payslips or altered customer financial details to push loan applications through.
In his decision, Justice Shariff described the misconduct as serious, saying it exposed borrowers to the risk of entering unsuitable loans that could lead to hardship or default.
“The contraventions here were serious in that they pertained to obligations designed to protect consumers and regulate industry participants,” Justice Shariff said.
“I am satisfied that [RAMS’] contravening conduct exposed consumers to a risk of loss that the loans they entered may not have been suitable for their circumstances which also exposed them to a risk that they may have been unable to service their loans without substantial hardship, or may have defaulted on their loan repayments and incurred fees or charges, as a consequence of those defaults.”
Speaking last week, ASIC deputy chair Sarah Court said the case underscored the regulator’s commitment to holding lenders accountable for poor practices.
“Financial entities must adhere to their obligations under the law and consumers must be protected from lending practices which can expose them to harm,” Ms Court said.
“ASIC will continue to scrutinise those involved in the whole home lending process and will hold financial institutions accountable for misconduct.”
Westpac first began exploring a sale of the RAMS business in early 2024, but terminated the process in April 2024 after failing to find a suitable buyer. It subsequently decided to wind down the brand, closing its RAMS Franchise Network in August 2024.
RAMS had operated as a stand-alone business within the Westpac Group since its acquisition in 2007, running through a network of independent franchisees and staff who offered RAMS-branded home loans that primarily targeted first home buyers and self-employed borrowers.
However, it was sued by the financial services regulator in June 2025 and a major court action was lodged in late May 2024 by former franchisees who alleged that the group unjustly terminated their contracts.
A sale to a consortium involving Pepper Money would mark one of the largest non-bank acquisitions in recent years, underscoring the continued appetite among specialist lenders and investors for established mortgage portfolios.
Pepper Money — one of Australia’s largest non-bank lenders which recently celebrated its 25th anniversary — has been expanding its loan servicing and asset acquisition capabilities in recent years. The group already manages a broad range of residential mortgages, asset finance products, and commercial loans, and has positioned itself as a key player in the non-bank sector amid strong investor interest in mortgage-backed assets.
Over its history, Pepper Money has helped 570,000 customers access loans, including residential loans, asset finance and commercial mortgages, funded $69 billion in loans, and now has $20 billion in assets under management.
[Related: RAMS hit with $20m penalty for home loan compliance failings]
