Small Lenders Moving Up
Treasurer Wayne Swan has announced that the Government’s $16 Billion Dollar boost to the mortgage securitisation markets has done its job by keeping the cost of funds lower allowing more private investors to join in reports SMH. Mortgage backed bonds are the prime source of funding for smaller lending institutions. March 2010 has been the strongest month since early 2007 for the securities lending market. Some industry members have called for the RBA to actually purchase these bonds from the smaller lenders to ensure liquidity remains in the marketplace. Treasurer Wayne Sawn stated that competition and was re-emerging in the home lending market.
Simon Reibelt from Oasis Home Loans Northern Beaches said that the faster more investors decided to purchase mortgage backed bonds off smaller lenders the greater the competition would become within our lending market.