Login
ISCOVER
Staff Reporter
Low credit growth and various legislative challenges could result in industry-wide consolidation in 2012, Homeloans' chairman Tim Holmes has claimed.
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.
Speaking at the non-bank 's 11th Annual General Meeting last week, Mr Holmes said consolidation would ultimately create opportunities for the lender.
"Over the next 12 months we expect to see further consolidation within the second tier and non-bank sector, and Homeloans is actively looking for acquisition opportunities. With fewer brands in the marketplace, this strengthens our position as a genuine alternative to the major banks," he said.
According to Mr Holmes, the industry has faced significant challenges in 2011, including the government's abolition of exit fees for mortgage lending products and slow housing credit growth.
While these events will prove challenging for some lenders, Mr Holmes said for others, including Homeloans, these challenges are outweighed by the strong opportunities they bring.
"The existence of exit fees had historically created a competitive disadvantage for some lenders, and their removal will create a more level playing field and transparency of mortgage product offerings. Further, continuing channel conflict is evident between the retail and third party distribution arms of the major retail banks and this provides greater scope for brokers and consumers alike to engage with our business," he said.
