Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
DirectMoney forced to turn away new business

DirectMoney forced to turn away new business

Marketplace lending platform DirectMoney has been forced to offload some of its business to another lender to cope with an excess of loan applications.

In a statement to shareholders, DirectMoney executive chairman Stephen Porges said the company is establishing a referral arrangement with “a trusted lending institution”, which is intended to provide a further option for its “excess loan applications which cannot by supported by sale of loans to the fund or institutional investors”.

“This referral arrangement is also attractive as it has the potential to be extended into a more permanent loan sales arrangement,” he said.

Advertisement
Advertisement

“Consumer appetite for DirectMoney personal loans is strong and we are committed to our diversified strategies to fund this demand.”

Mr Porges said the ASX-listed lender remains “intensely focused” on progressing loan sales to institutions, as well as the development of a funding warehouse.

“At the same time, we are rolling out a strong marketing program for the fund which, as we have said, will be a centrepiece of the DirectMoney business model in the medium-to-long term,” he said.

“This is both a unique opportunity for Australian retail investors and a significant source of funding for our business.”

As of March 2016, DirectMoney held $6.78 million of loans and had net assets of $9.10 million on its consolidated balance sheet.

[Related: DirectMoney sees record month of loan settlements]

DirectMoney forced to turn away new business
mortgagebusiness

 

Latest News

A new cycle of “meaningful” growth cannot be restarted through property, the CEO of NAB has said, suggesting that business investment is...

New figures from AMP Bank have shown a “significant uptick” in the number of home loan customers switching from IO to P&I loans ahea...

Customer-owned banking institutions wrote $6.6 billion in the 2019 financial year, up 7.8 per cent from the previous year and outpacing grow...

FROM THE WEB

podcast

LATEST PODCAST: New lending launches

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.