A non-bank lender has announced it will transition to exclusively selling loans financed by its own funding program in the new year.
Effective 1 January 2020, Resimac will discontinue its Resimac MoniPower and Resimac Accelerate products for new business, selling solely loans funded under the Resimac brand which will continue to be distributed by its broker network and white label products via mortgage managers.
Resimac CEO Scott McWilliam attributed the move to a simpler product suite to market demand.
“We are incredibly grateful to our business partners, including Adelaide Bank, Pepper, Advantedge and Macquarie, with whom we’ve had incredibly strong relationships over a long period of time,” he said.
“Our partnership with Adelaide Bank goes back more than 25 years, and we’ve been involved with Pepper for nearly 10 years.”
As of 30 June 2019, Resimac’s non-principally funded loan book was reported at $3.2bn.
According to Resimac GM of distribution, Daniel Carde, the market now seeing Resimac as a lender played into the decision to discontinue non-principally funded products.
“However, mortgage management remains a part of our DNA, with our role in this segment being focused on funding mortgage managers rather than being a mortgage manager ourselves,” he added.
“Mortgage management is a vital sector of our industry, which encourages competition within the marketplace and provides borrowers and brokers access to a wider range of choice. Our partnerships with leading mortgage managers are a key component of our broader third-party distribution strategy.”
The decision to end the Resimac MoniPower and Resimac Accelerate products is not unprecedented, with both Resimac Ultra Plus and Resimac Optima products having been discontinued for new business in October 2019 and June 2018 respectively.