Smh:
MORTGAGE brokers are warning of a rush to the exits from RAMS Home Loans because borrowers are desperate to refinance.
RAMS, the highest-profile Australian victim of the petrification of the US debt market, has sold its brand and franchise operations to Westpac after the share price tumbled, and amid continued uncertainty about its business model.But the non-bank lender has retained its loan book, which brokers say is rapidly deteriorating in value. Roger Ward, from Ward Finance & Advice, said: “At the moment there’s an absolutely dramatic overrepresentation of RAMS people that are refinancing. Not only are they looking around but we are doing the refinancing.
“At least 20 to 30 per cent of the refinances that I’ve done in the last month have all been RAMS, which is way out of kilter with their market penetration.”
Brokers say that RAMS customers are looking to leave the lender in part because of the unwanted attention drawn to the RAMS brand, and in part because it has increased mortgage rates to uncompetitive levels.
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