Despite some lenders scaling back wholesale funding due to tough market conditions, ING DIRECT has announced a new funding relationship with mortgage manager Resi.
Macquarie Bank’s recent departure from mortgage lending left Resi short of a key funder and so the addition of ING DIRECT would seem timely.
“Resi had actually been looking to work with ING DIRECT for some time,” said Resi head of marketing Lisa Montgomery. “It was a natural fit for ING and Resi to come together.”
Backed by existing funder Challenger, and now balance sheet lender ING Direct, Ms Montgomery believes Resi’s diversified funding gives the business considerable strength in the current market.
“We’ve had a great relationship with Challenger for many years and this will continue into the future.”
“It’s very difficult for any business to obtain a competitive advantage in the current environment however diversified funding will bring greater opportunity for Resi to develop new products,” Ms Montgomery said.
It was Resi’s infrastructure and well-established business model that appealed to ING DIRECT, according to the bank’s head of mortgage management Brett Mansfield.
“Our model was developed on attracting established business operators with strong management, sound reputation, strong risk management practices and diversified distribution,” he said.
“Resi comfortably meets these hurdles and we welcome them as long-term business partners.”
Mr Mansfield said ING DIRECT is unlikely to accredit any more mortgage managers in the near term; however he’s “always willing to hold discussions with potential managers who believe they meet our program’s criteria”.