Resimac moves to exclusively its own funding

From

Scott McWilliam

Resimac has announced that it will discontinue its Resimac MoniPower and Resimac Accelerate products for new business, effective from 1 January 2020.

The change means the leading non-bank mortgage provider will exclusively sell loans financed by its own funding program, both under the Resimac brand distributed via its extensive broker network and white label products via mortgage managers.

Resimac CEO, Scott McWilliam, said market demand drove the decision to focus entirely on products funded by Resimac itself and cease offering non-principally funded loans, which would result in a simpler product suite.

“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. Our partnership with Adelaide Bank goes back more than 25 years, and we’ve been involved with Pepper for nearly 10 years,” he said.

Mr McWilliam added these relationships would continue as Resimac had sizeable loan books with each of these partners. Resimac’s non-principally funded loan book was reported at $3.2 billion, as at 30 June 2019.

Resimac’s General Manager Distribution, Daniel Carde, said the market now saw Resimac as a lender and the decision to discontinue non-principally funded products supported this view.

“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.

“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,” he said.

The decision to end the Resimac MoniPower and Resimac Accelerate products follows the discontinuation of the Resimac Ultra Plus and Resimac Optima products, for new business, in October 2019 and June 2018 respectively.

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