Lynch: ABN Amro still strong

by BN28 Jan 2009

ABN Amro's head of reverse mortgages, Martin Lynch, says the lender remains strong despite the troubles plaguing its parent company the Royal Bank of Scotland (RBS).

RBS has been nationalised by the UK government after admitting that it could not meet its debt obligations, but ABN Amro's local operations has kept going from strength to strength.

ABN Amro is now Australia's biggest provider of reverse mortgages with about 30% of the market.

"We're still doing well," Lynch said. "We're now the primary provider in Australia."

ABN Amro differs from other providers of reverse mortgages in the country because it only operates through the third party channel and Lynch said that brokers were rewarding the lender for its loyalty.

"We doubled in size last year from the previous year in volumes," Lynch said.

Financial products research firm Canstar Cannex recently released a report saying it was no longer rating reverse mortgage providers after eight exited the market in the past six months.

Canstar Cannex attributed the withdrawal of reverse mortgage lenders to the global credit crisis.