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ISCOVER
Jessica Darnbrough
Funding options for mortgage managers and originators are improving and there is growing optimism that the sector can regain market share over the coming year.
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Speaking to The Adviser, National Mortgage Company’s chief executive Angelo Malizis said that while the Global Financial Crisis forced many mortgage managers to scale backm, a number of groups are now looking to re-enter the industry and compete for market share.
“Mortgage managers and non-bank lenders are definitely ready to compete again,” Mr Malizis said.
Last month, National Mortgage Company launched Independent Mortgage Managers (IMM) in response to the growing demand for balance sheet bank funding and loan servicing support.
“One month after our launch and we have been inundated with positive feedback. We have already had 21 mortgage managers tell us that they would like to come on board and we hope to grow that number to 100 within the next six months,” Mr Malizis said.
Mr Malizis said the positive feedback highlighted the resilience of the mortgage management sector and suggested this market is ready to once again compete with the majors for market share.
“I have had a lot of mortgage managers thank us for setting up IMM. It gives them a chance to compete once again in the lending space, without having to front all the costs and do all the back-end work.”
Mr Malizis’ comments are supported by a recent The Adviser straw poll which found a majority of brokers are happy to recommend non-bank products to all clients.
When asked who mortgage brokers would recommend non-bank products to, 64.5 per cent said all clients, while just 7 per cent said no clients.
Of the 372 respondents, 25.8 per cent said they would offer non-bank products to clients who fall outside the banks' criteria.
