In order to support competition in the Australian mortgage market, late last year the federal government introduced $8 billion of funding for non-bank lenders and small banks under a scheme known as “RMBS”. This scheme is designed to assist lenders who predominantly source their funds from the wholesale credit markets that have largely dried up as a result of the global financial crisis.
The peak industry body for the reverse mortgage industry, SEQUAL, has recently made a submission to government requesting access to this funding scheme for reverse mortgage lenders. SEQUALCEO, Kevin Conlon said that the global financial crisis had “…constrained the ability of some reverse mortgage lenders to access funding and the effect of these conditions is that a number of SEQUAL members have either withdrawn from the market or significantly scaled back their participation.”
Reverse Mortgage Watch supports SEQUAL’s request for RMBS funding. If successful, this will increase the number of active lenders offering reverse mortgages, and likely provide more choice and a better outcome for consumers. Stay tuned for more developments on this.
{ 2 comments… read them below or add one }
it’s very useful information. thanks.
Well in the current economic situation we are seeing that Giants are seeking findings and it seems like almost every industry seeks Government funding