Login
ISCOVER
RHG could be gearing up to reenter the mortgage market according to media reports, but brokers are divided as to whether there is substance in the speculation.
Last week the former non-bank lender managed to raise its full year profit guidance by $10 million, raising conjecture that it may return to the market or look to buy a loan provider later in the year.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
According to the latest weekly Advisor straw poll, 48.8 per cent of brokers do not expect RHG to return to the mortgage lending market, while 42.2 per cent think they will and 9 per cent remain unsure.
Mortgage Wisdom broker Brian Hastings said he could see RHG reentering the market, though he believes they would be faced with "some significant challenges".
“RHG will have a hard time rebuilding their client and broker relationships, because poor service and high rates have impacted customers in the past," Mr Hastings told The Adviser.
“RHG would have to go to great lengths to rebuild trust with brokers so they can return to doing business again.”
RHG was created in November 2007 when the RAMS brand and franchise network was sold to Westpac. As part of the agreement RHG was prohibited from originating new loans for three years until November 2010.
The company has remained tight lipped about whether or not it will re-enter the market, however a spokesperson for RHG told The Adviser that the company would “consider its options in the future”.
“We wouldn’t rule anything out just yet,” the spokesperson said.
