Two non-bank lenders exit market
Two non-bank lenders are pulling out of the home loan market because of a lack of funding.
Tuesday, July 13th 2010, 9:24PM
One is Christchurch-based Moorhouse Mortgages. Its managing director Louise Ledger says although this is a disappointing result for the company and the broker community, "we have reluctantly been forced to make this decision".
Moorhouse Mortgages has been running for four years and Ledger says the market, the recession and the lack of wholesale funding has meant that it can't accept loans as there is no money to lend.
She told Good Returns that more information will be provided next week.
Also Number 8 Mortgages, run by Rob Tucker, is pulling out of the market.
Tucker says its funders had tightened lending criteria so much that the company no longer had a point of difference in the market.
No 8 was now having to turn down applications it would have been able to approve previously.
Tucker also says the court case between GE and a Blue Chip lender had also killed the no doc and lo doc market.
If this ruling stands lenders will be required to know much more about borrowers and their circumstances than has been previously required with these sorts of products.
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