By Gareth Vaughan
SBS Bank, whose gross lending shrank by 8% in the year to March, returned to growth in the June quarter helped by the acquisition of a portfolio of reverse equity mortgages.
SBS bought a portfolio of reverse equity mortgages valued at $46 million in May. The deal significantly grows SBS' exposure to reverse equity mortgages from its about $15 million SBS Advance portfolio.
Tim Loan, SBS' general manager for finance, told interest.co.nz the acquisition was an opportunity that came up.
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1 Comments
Wow I would have thought that this type of lend was outside of the mainstream banks risk appetite.
Major mismatch of maturities in the reverse mortgage market.
Alls good though because treasury will prop them up as they recognize mortgage backed securities even though they are just accruing interest and have no cash flow component.
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