Login
ISCOVER
The mortgage manager and originator sector has been buoyed by the news that Challenger Mortgage Management and RESIMAC Limited are next in line to benefit from the government’s investment in non-bank RMBS.
The mortgage manager and originator sector has been buoyed by the news that Challenger Mortgage Management and RESIMAC Limited are next in line to benefit from the government’s investment in non-bank RMBS.
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.
The Australian Office of Financial Management (AOFM) – the office tasked to administer the Federal government’s liquidity injection into the non-bank sector – yesterday announced that RESIMAC and Challenger would be eligible for an investment of up to $500 million each.
Steve Weston, general manager of commercial and residential lending for Challenger Mortgage Management, told Mortgage Business that the announcement was “a vote of confidence in the non-bank sector by a government body".
Mr Weston said that while Challenger had remained in a strong position with a high level of liquidity, the boost was welcomed.
“This will add at least a further $500 million to the funds that Challenger has available for mortgage managers and originators.”
Garry Driscoll, general manager of Mortgage Ezy said yesterday’s announcement was “excellent news” for mortgage managers.
“The AOFM has been clear that the liquidity injection into the non-bank sector is to boost competition.
“As well as the $500 million from the AOFM the government initiative will also encourage other investors back into the market.”
RESIMAC and Challenger were selected for the investment from the first selection round for the allocation of mandates for RMBS issues to be priced by the end of December.
FirstMac and Members Equity Bank were the first two organisations selected for AOFM investment from the first round of submissions.
FirstMac subsequently announced a $600 million RMBS issue last Friday.
According to the AOFM, “confirmation of the AOFM’s investment in these proposed RMBS issues is subject to finalisation of acceptable documentation” and confirmation that relevant conditions will be met and agreement on pricing.
A request for proposals for the second selection round is expected to be issued in early December, with a closing date for the lodgement of proposals in mid January 2009.
Today's other news
