A new non-deposit taking lender is joining the market later in 2018 as a wholesale player dealing exclusively with leading mortgage broker groups.
Australian Mortgage Marketplace (AMM) said yesterday it will finance fully featured prime mortgage product on a “private label” basis and will use innovative technology to benefit both borrowers and investors.
Industry veterans Graham Andersen and Kym Dalton are among those behind the new player as chief executive and COO, respectively.
Andersen has been involved in capital markets and financial product development for many years and had established two financial services startups. Dalton was a leading financial literacy commentator and joint founder of credit education company called GlobalED.
AMM said that its innovation extends to both mortgage product design and the structure of the mortgage-backed securities that will fund its products.
It will particularly leverage distributed ledger technology (DLT) in its business model, and has partnered with technology provider Block8 to develop a shared data and workflow system.
Using DLT will bring efficiencies to the company by enabling it to cut out layers of complexity and cost in financing mortgages, said AMM.
It intends to use these efficiencies to offer “a genuinely competitive alternative” to existing residential mortgage lenders, including the major banks. For investors, it expects its DLT platform to give them the confidence to fund mortgages by “investing like a bank”.
“With no legacy systems, substantial in-house expertise and industry leading business partners, AMM will maximise the use of developments in technology to bring tangible benefits to all in the mortgage value chain,” said chief executive Graham Andersen.
AMM is in the process of its second round of capital raising, after successfully completing its first round of seed capital raising in April 2017.