Ryan: Non-banks have not disappeared
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BN
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15/12/2009 8:30:00 AM
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1
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Non-bank brands such as Resi Home Loans, Mortgage House, Homeloans Limited, Firstfolio, Better Mortgage Management, Mortgage Ezy, Club Financial Services, Australian First Mortgage and Opportune Home Loans continue to "drive choice and competitive pricing to consumers" according to Paul Ryan.
Ryan, managing director and founder of Opportune Home Loans, said the non-bank sector was "alive and well" and had not, as recent commentary might suggest, disappeared.
He said non-banks who were playing a significant role in helping to keep the banks honest.
"We need to maintain the healthy competition otherwise we are going to see more of the elevated increases that many home owners experienced last week."
According to Ryan, the non-bank sector could be considered stronger than ever as some of the major banks have opened up a wholesale channel, which means the funding options are more secure.
"More secure funding combined with an extremely personalised and nimble service augurs well for stronger competition," Ryan said.
"Wholesale funding means non-banks won't have to rely on the securitization market to flourish. "
Ryan said there were a lot of similarities between the current market and the time when the non-banks sector really launched in the mid 90s.
"The major banks dominated the market in the early 90's. Consumers had no real competitive choice in lenders, products, rates and service. The banks had everything for themselves and could do pretty much what they wanted - there was no competition. It wasn't until Aussie Home Loans, RAMS, Wizard, Resi, Mortgage House and others opened their doors that consumers had the opportunity to get a better deal."
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mtge mgr on
15 Dec 2009 10:04 AM
Makes you wonder what you have to do to get positive publicity in the mainstream media. The Apprentice comes out with a product that is unbelievably overpriced, calls it the first competition the banks have faced for 2 years and gets 3 pages in a major Sunday paper! My Grandpa would have loved that bull%^&t - he would have cut the paper into small sheets and used it in the longdrop.
Bouris, the non bank lenders have been through a tough time over the last 2 years, trying to keep afloat and remain competitive with limited funding. Your comments on the weekend are an insult. Used to respect you - not any more!!