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Macquarie Securitisation to wind-back its Australian residential mortgage origination services |
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05 March 2008 Macquarie Bank Limited today announced that Macquarie Securitisation Ltd would wind-back its Australian residential mortgage origination services for both retail and wholesale customers due to the significant increase in the cost of funding mortgages and current conditions in the global mortgage securitisation market. The Head of Macquarie’s Banking and Financial Services Group, Peter Maher, said that from 7 March 2008 the Bank would substantially reduce origination of new residential mortgages in Australia but would continue to provide full service to Macquarie’s existing Australian customers who hold 95,000 loan facilities. “There will be no impact on these customers and we will continue to provide to them the range of existing customer services including mortgage variation services. It will be business as usual for our existing customer base. New mortgage business will continue to be written although it will be at much reduced volumes,” Mr Maher said. Mr Maher said Macquarie’s mortgage portfolio comprises approximately 2.5% of the total outstanding housing loans market in Australia. The portfolio is currently predominantly funded by wholesale securitisation markets. As noted by numerous market participants, deteriorating conditions in these markets over the past six months have resulted in a sharp rise in the cost of funding mortgages and significant reductions in the availability of funding from both the domestic and international mortgage securitisation markets. Macquarie Group Chief Financial Officer, Greg Ward, said: “We have previously advised the market that in full year 2007, the retail and wholesale residential mortgage businesses represented less than one percent of Macquarie Group profits. The impact of the decision to wind-back the business is not financially material. “We have also previously advised that the mortgages business has no sub-prime exposure, default rates are low and the credit quality of the portfolio is good,” Mr Ward said. Contacts:
Paula Hannaford
Richard Nelson |
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Where we provide any advice on this website, it has been prepared without considering your objectives, financial situation or needs. Before acting on any advice on this website, you should consider its appropriateness to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. Past performance of any product described on this site is not a reliable indication of future performance. Other than Macquarie Bank Limited ABN 46 008 583 542 (MBL), any Macquarie Group entity noted on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). That entity's obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise. |
