Mortgage People leave the supermarket bank
Superbank and Mortgage People have decided to part company having decided their partnership has been mutually unsatisfactory.
Thursday, October 20th 2005, 6:23AM
by Jenny Ruth
Mortgage People was one of six mortgage broking firms Superbank chose as a distribution channel when it launched its home loan products in July 2004.
Superbank chief operating officer James Munro says the decision shouldn't be taken as any criticism of Mortgage People.
Mortgage People's business is concentrated in Auckland and does a lot of specialised lending such as commercial and development lending which Superbank doesn't cater to, he says.
"It's all great business, but it's not the business that Superbank's in."
The bank's relationship with the other five firms - Mike Pero Mortgages, Mortgage Choice, Mortgage Express, Mortgage Link and Ray White Financial Services - will continue, Munro says.
He says Superbank also wants to maintain a good relationship with Mortgage People. "You don't know what the future's going to bring. We definitely want to keep the door open."
Mortgage People principal Carey Brunel says his firm simply wasn't able to provide the volume of loans Superbank was seeking.
"There are so many suppliers of money in the market place and you can't fill all the requirements of all the lenders."
Mortgage People has never operated to volume targets with any lender and each of its brokers and their clients make the decision about where to place a loan on merit, he says.
"If there's not a demand for the service, how can we fill it?"
Also, Mortgage People's major focus is on the property investment market whereas Superbank's products cater more for owner-occupiers.
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