31-May-2019 • Corporate
ME has launched a new portfolio funding business to finance loans and other receivables originated and managed by partner businesses.
The portfolio funding business builds on ME’s existing securitisation skills, and provides innovative funding opportunities for a new range of business partners, including third-party lenders and FinTechs.
Household Capital , an ‘equity release’ or ‘reverse mortgage’ lending business set up by Josh Funder and chaired by the Hon Nick Sherry, is the first cab off the rank.
Household Capital has developed a new approach to responsible lending and borrower assessment for equity release mortgages.
The terms of the facility are innovative and are designed to fill a major financial need of many Australians who would prefer to continue living at home during retirement.
ME established an initial $100 million facility for Household Capital and have acquired a minority stake in the organisation.
ME’s General Manager of Wholesale Banking, John Powell, said, “while the initiative more broadly fills a gap in the market, it also fulfils ME’s core purpose of helping Australians get ahead, by assisting retirees to live comfortably at home.”
“We also see broader opportunities to partner with existing and newer lending entities which are seeking to disrupt the delivery of lending products to retail and SME clients.”
ME anticipates partnerships with several other third-party lending organisations seeking funding, with further announcements expected in 2019.
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