The Australian. By Michael Roddan (News Ltd). Read the article at The Australian here.
Mark Bouris’s Yellow Brick Road is looking forward to challenging the banks in 2016 after logging a record stretch of mortgage settlements at the end of last year as major lenders face an uphill regulatory battle.
Yellow Brick Road, which operates as a mortgage broker and wealth management group, had “an abnormally busy period” in the lead-up to Christmas and the new year, executive chairman Mark Bouris said.
YBR saw a 50 per cent increase in home loan settlements in December year-on-year, contributing to a 30 per cent increase in settlements over the last six months of 2015.
The rush included a $12 million spree in lodgements over the three working days between Christmas and New Year’s Day.
“This is unheard for the industry,” Mr Bouris said, as he eyed further growth in the property market, albeit at a more gentle pace after recent regulatory changes. Major lenders are rowing against the current of regulatory change as policymakers attempt to insulate taxpayers from the big banks’ too-big-to-fail status.
The Australian Prudential Regulation Authority had slapped a 10 per cent growth limit on investor lending and tightened capital reserve holding rules for the biggest banks — the latter move prompted the nation’s largest lenders to increase home loanrates out of the Reserve Bank cycle.
“The changes have slowed down investors but homeowners are still hot on the trail for a better deal on their mortgage,” Mr Bouris said. “Over the past quarter, Yellow Brick Road has consistently delivered highly competitive rates by quickly responding to industry changes. This is growing the Yellow Brick Road business and we plan to continue to launch fresh innovative ideas and challenge the banks in the year ahead.
“While the industry is talking about a slowdown in the December quarter, we have been moving full steam ahead.”But investors have been less confident than Mr Bouris, with Yellow Brick Road shares losing more than half their value over the past 12 months, from 60c to 28c, after a 3.7 per cent lift during trade yesterday. Yellow Brick Road last year logged a $2.55m full-year loss, which itself was an improvement of 71 per cent over the prior year’s loss of almost $9m.
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