RESIMAC Non Bank Roundup: May 2016
Given APRA's restrictions of lending by ADIs, how will you use this to expand market share?
While RESIMAC is not supervised directly and indirectly by APRA, our approach has always been to consider their guidance to ADI's to ensure we maintain a competitive, robust and balanced approach to our lending. RESIMAC has a long-standing history in the Australian residential mortgage market, and as a non-ADI and active participant in the securitisation markets this balanced approach has allowed us to deliver a broad range of competitively priced lending solutions to the wider mortgage market.
By offering a broader range of lending solutions than that of our competitors, our ability to capture market share is heightened irrespective of the current market conditions.
How do you balance responsible lending with distinguishing yourselves from the banks and expanding market share?
RESIMAC fully supports the principles of responsible lending and we ensure they are met each time we look to deliver new and innovative lending products to market or enhance our existing products and policies. For example, in 2015 we delivered a simplified Specialist Lending product range, removed lenders mortgage insurance from our Prime loans under 80% LVR, enhanced our Prime Alt Doc loan with greater flexibility, expanded our non-resident lending policy and introduced an '85% non LMI' policy on some Prime loans.
All of these enhancements provide for greater flexibility and choice when it comes to the needs of Australian borrowers and all were delivered with the principles of responsible lending in mind.
With increasing regulation of SMSF investment, will you reduce your presence in this part of the market?
Whilst not specifically required under current regulation, RESIMAC does give consideration to the age and type of property being purchased and the overall asset pool of the fund, both before and after the proposed investment is to be made, to ensure our product is the right lending solution for the borrower.
Additionally, individuals involved in the transaction are asked to obtain both independent legal and financial advice in relation to the loan being offered. As regulation of SMSF lending shifts, RESIMAC will review our product on offer and make any changes necessary to ensure compliance with relevant legislation at that time.
Should you be marketing yourself directly to consumers?
RESIMAC has been involved in the Australian mortgage market for over 30 years, in both the wholesale and retail sectors. Throughout this period we have developed a distribution strategy that provides for diversification in loan origination. Our origination partners operate in a variety of market segments, including direct to consumer, and by partnering with some of Australia's best known and most trusted brands RESIMAC is able to operate efficiently in the wider mortgage market.
What is your top product for 2016 and why?
In an ever changing lending environment, it is difficult to isolate just one 'top product' that will take us forward during 2016. We are continually looking for ways to enhance our range of lending products and the underlying lending policies attached to those products. This was clearly evident during 2015 where we introduced a comprehensive list of product and policy enhancements, and this approach will continue in 2016.
By offering both Prime and Specialist lending solutions, the opportunities for RESIMAC and our business partners are endless.
How will the property market change in 2016, and what are RESIMAC doing to prepare?
The state of the Australian housing market heading into 2016 has generated much debate amongst industry commentators in recent times. The general consensus is that price growth in the Australian housing market will soften over the coming year, but the question 'to what level' remains. Some reports suggest a slowdown to 2%, where others are expecting growth of between 4 to 9% in some capital cities.
RESIMAC is backed by an experienced management team and has always maintained a robust and balanced approach to lending. This places us in a comfortable position as we head into what is tipped to be an interesting year for the Australian housing market. In addition to our balanced approach, our relative size allows us to react swiftly to any changes in the market, whether they are positive or negative.
MPA 16.03 Feature Article. Prepared by Daniel Carde, Director Product, Marketing and Strategic Partnerships, RESIMAC Limited.