mpa lender news
contents 54 A review of news in the world of non-bank lending and mortgage management 56 opinion: Mortgage Ezy CEO Gary driscoll on surviving the GFC 58 in profile: liberty financial coo James Boyle 62 Opinion: Genworth report on EXIT fees
Investors rush to ME Bank bond issue With securitisation markets effectively frozen, ME Bank (formerly Members Equity Bank) has used the government guarantee of wholesale funding to place a $500m bond issue, Reuters reported. Paul Garvey, manager financial market at ME Bank, said the issue was part of plans to continue to “diversify the funding base available to the bank.” “Further deals will be considered over time,” he said. ME Bank is one of the few triple-B-rated banks to make use of the government guarantee, which has a sizeable fee of 150bps attached to it. In contrast, major banks, which only pay a fee of 70bps due to their higher credit rating, have raised $112bn in funding by issuing government guaranteed bonds offshore and onshore since the scheme was announced in October last year, according to Deutsche Bank data. ME Bank priced $500m worth of three-year bonds at 50 basis points over swap. It issued $250m in fixed rate and $250m in floating rate notes. Macquarie Bank, NAB and Westpac Institutional Bank jointly lead the offer.
Pepper expands product mix Pepper Homeloans has set its sights on borrowers who fall outside the major banks’ and mortgage insurers’ lending criteria by launching a range of new mortgage products. The new products are geared towards selfemployed or small business owners (or otherwise good quality customers) denied access to housing finance as a result of the GFC, said Patrick Tuttle, Pepper’s managing director and CEO. “These products will provide many of the features that mortgage introducers have been previously accustomed to, including: unlimited debt consolidation; the ability to refinance an existing low-doc loan up to 80% LVR; and the ability to consider past adverse credit registered two years prior to application,” he said. The new products are a Full Income Documentation Loan (full-doc) and an Alternative Income Documentation Loan (alt-doc).
500m ME Bank priced $500m worth of three-year bonds at 50 basis points over swap
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