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Mortgage brokers have been responsible for 95 per cent of a Tasmanian bank’s home loan growth in the past year, according to the bank’s head of broker distribution.
MyState’s group executive of broker distribution, Huw Bough, revealed that the company was “one of Australia’s fastest growing banks”, largely thanks to its broker-led mortgage growth.
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Mr Bough said: “We have been working hard to be the bank of choice for brokers and have deliberately aligned our success with that of our brokers. This strategy is working well.”
For example, in February of this year, the Tasmania-based lender revealed that it had seen a record $671 million of home loans settled in the first half of the financial year. Approximately 60 per cent of the bank’s total loan book was originated through the third-party channel.
Speaking to The Adviser this week, Mr Bough added: “Our broker-led strategy has delivered sustained growth and greater geographic diversification.
“Brokers are responsible for 95 per cent of MyState’s home loan growth over the past 12 months. Contrast this with the second half of the 2014 financial year, when the broker channel was responsible for 55 per cent of home loan growth and the second half of the 2016 financial year - 74 per cent of home loan growth.
“Harnessing the power of its mortgage broker network helps MyState serve a broader geographic base and reduce concentration risk,” he said.
According to MyState Limited, the broker-led business growth has helped the group secure its largest residential mortgage-backed securities (RMBS) deal.
Earlier this week, the diversified financial services group said that the “strong investor demand” for MyState Limited’s $400-million RMBS capital-raising recognised the “strength and quality of its mortgage book”.
The senior tranches of CONQUEST Series 2017-1 notes received a preliminary rating of AAA (sf) from Standard and Poor's and Fitch Ratings.
The transaction, the sixth of its kind under the CONQUEST program, was backed by Australian prime residential mortgages originated by MyState Bank Limited.
Mr Bough told The Adviser that this transaction was the “largest in the long history of the CONQUEST program, one-third larger than the most recent transaction and elicited broader investor support than any of our previous transactions.”
He added: “Investors see our strong lending growth profile, recognise MyState as a regular issuer to the market and increasingly seek to benefit from participating in a program with exemplary credit performance and increasing geographic diversification.”
Eighteen investors, both domestic and abroad, participated in the transaction.
[Related: MyState changes senior management to focus on brokers]
