Links
Tools and Calculators
RBS exits reverse mortgage market
Australia's biggest reverse mortgage provider announced it is backing out of the market.
Following a strategic review of its businesses, the paritally state-owned Royal Bank of Scotland decided to exit all non-core retail businesses outside of the United Kingdom. As a result, it is closing its Reverse Mortgages Services Pty Limited.
RBS head of reverse mortgages Martin Lynch told Broker News that the division is currently in the process of being sold and the understanding is that, once it has been acquired, it will return to the market with its previous range of products.
All applications that had been received by the RBS reverse mortgage division on or before 19 April will be processed, subject to settlement within a three-month time frame. Upfront and trail commission payments on settled loans will continue to be honoured.
"The decision to close to new business will not impact our existing customers with reverse mortgage loan products; there will be no changes to the current loan terms and conditions and all existing commitments, including amounts under flexible draw and monthly income drawdown options, will be honoured in accordance with the terms and conditions," Lynch said in a statement to brokers.
The exit of RBS leaves just three lenders in the Australian market place - BankWest, Commonwealth Bank and St. George.
By Andrea Cornish | 06 May 2010
Source: Broker News
All brokers with The Lending Shop are members with MFAA - The Lending Shop is proudly operated by the Australian Loan Company Ltd.
MFAA Wholesale aggregator
of the year 2008
Finalist - Wholesale aggregator
of the year 2009
