We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Westpac confirmed in an Australian Securities Exchange statement that it would cease new home loan applications through RAMS, effective immediately. The decision follows a comprehensive “strategic review” aimed at simplifying Westpac's overall business model.
"We have accomplished significant portfolio simplification over recent years. After a thorough evaluation, it became clear that continuing to offer home loans through RAMS franchisees does not align with Westpac's future direction," stated Damien MacRae, Westpac's managing director for mortgages.
The bank has assured customers that current RAMS home loan holders will not see their services interrupted. Existing loans remain intact, and customers can still access support via the RAMS app, website, and call centers. Westpac also indicated proactive communication with these customers regarding any mortgage applications already in progress.
To mitigate the effects on franchisees and employees, MacRae mentioned, "We are offering mutually agreed support for franchisees and ensuring there are ongoing opportunities within Westpac for RAMS employees."
Westpac has decided to retain RAMS' existing loan portfolio, which is valued at approximately $31.8 billion, implying a significant ongoing commitment to the legacy customers of the subsidiary.
In response to similar moves by prominent banks, such as ANZ facing a significant $14bn bond scandal earlier this year, Westpac’s decision comes at a time of heightened scrutiny and industry-wide changes. As financial institutions refine their operational models, the second-order effects on employees and smaller franchisees become tangible.
Founded in 1991, RAMS had grown into one of Australia’s leading non-bank home loan providers before its acquisition by Westpac in 2008 for $140 million. This year, an attempt to sell RAMS was aborted due to unsatisfactory bids, illustrating the complex challenges in divesting a business line during turbulent economic times.
Additionally, RAMS franchisees have initiated a class-action lawsuit via Morris Mennilli Lawyers, due to the termination of franchise agreements. While Westpac remains poised to defend this lawsuit, the full scale and implications of this legal battle remain to be seen.
The Australian Securities and Investments Commission (ASIC) along with the Australian Prudential Regulation Authority (APRA) are reportedly investigating RAMS' practices, further complicating the landscape for all parties involved.
For more insights on the evolving narrative surrounding this subject, you can refer to the original article published by Duncan Evans for NewsWire. Keep tabs on the latest developments in the banking sector by subscribing to our updates.
Published:Thursday, 8th Aug 2024
Source: Paige Estritori
| Mortgage Crisis: 40% of Australian Homeowners Under Pressure 09 Sep 2024: Paige Estritori A recent study has uncovered that an alarming number of Australian households are grappling with mortgage burdens, as over 1.4 million families find themselves in financial distress. This amounts to more than 40% of current home loan holders, according to new data from Finder, a consumer finance comparison service. - read more |
| Contactless Revolution: The Decline of Cash Among Tradies 07 Sep 2024: Paige Estritori Australia is embracing a cashless economy, a trend that is significantly reshaping how tradespeople, or 'tradies,' handle transactions in their day-to-day operations. - read more |
| RBA Remains Cautious Despite Economic Slowdown 06 Sep 2024: Paige Estritori Borrowers expecting a reduction in interest rates due to sluggish economic growth might have to wait longer, as the Reserve Bank of Australia (RBA) prioritizes inflation management. - read more |
| NSW Cracks Down on Abuse of First-Home Buyer Benefits 02 Sep 2024: Paige Estritori More than $9 million has been reclaimed in a concerted effort by Revenue NSW to ensure the first-home buyers program remains fair and effective. This initiative comes in response to a small group of applicants attempting to exploit the system meant to aid genuine first-time homebuyers. - read more |
| Retail Sector Braces for Tough Holiday Season 01 Sep 2024: Paige Estritori As Australians continue to face a challenging cost of living crisis, economic analysts have prepared retailers for a rocky road ahead as the Christmas season approaches. - read more |
| Stamp Duty Ruse Exposed: Hundreds of Aussie Homeowners Face Repercussions 01 Sep 2024: Paige Estritori Australia’s property market has witnessed a crackdown on homeowners exploiting a government initiative designed to ease the financial burden for first-time buyers. The scheme, intended to provide stamp duty relief, has seen numerous participants bending the rules to save money. - read more |
| Financing Your Dream Boat? Here's What You Need to Know about Insurance Purchasing your dream boat brings with it a rush of excitement and a sense of freedom unparalleled by the confines of land. Whether you envision serene days sailing crystalline waters or action-packed fishing adventures, owning a boat provides an escape to a world of aquatic possibilities. As you prepare to navigate the open seas or tranquil lakes, it's crucial to consider not just the wind in your sails, but also the protection of your new vessel. - read more
|
| The Benefits of Pre-Approved Boat Financing Pre-approved boat financing is an initial green light from a lender indicating that you are eligible to borrow up to a certain amount of money for the purchase of a boat. This process involves a preliminary assessment of your creditworthiness, usually before you start shopping for your new vessel. - read more
|
| Sea-Worthy Solutions: How to Compare Boat Insurance Providers in Australia Embarking on the journey to purchase a boat is an exhilarating milestone, bringing with it the promise of sun-soaked adventures and serene escapes on the water. Yet, beneath the waves of excitement, lies the crucial decision of selecting the right boat insurance provider in Australia—an aspect as pivotal as the vessel itself. Boat insurance not only safeguards your maritime investment against unforeseen incidents but also ensures that your nautical dreams stay afloat in turbulent times. - read more
|
| Nautical Know-How: Your Ultimate Pre-Boat-Purchase Checklist for Smooth Sailing Ahoy, future mariners! The allure of the open seas and the joy of sailing on your very own vessel is a dream that many Australians hold close to their hearts. Whether you envision leisurely cruises along the coast or adventurous voyages into the deep blue, the prospect of buying a boat ignites a sense of excitement and freedom that's hard to match. - read more
|
| Navigating Boat Loans: How to Determine Your Financial Course Have you ever imagined yourself steering through the sapphire waters, the wind in your hair and the sun on your face, aboard your very own boat? The dream of owning a boat is a passionate pursuit for many. Yet, before this vision becomes a reality, there is a significant financial journey ahead that requires careful navigation and thoughtful planning. - read more
|
| How to Choose the Right Boat Finance Option Before embarking on the exciting journey of purchasing a new boat, it is essential to have a clear understanding of boat finance options. Choosing the right financing option can save you a considerable amount of money in the long run. Having said that, the numerous finance options and terms can be confusing and daunting for first-time buyers. - read more
|
|
3 Things to Avoid When Buying a Used Boat in Australia Buying a used boat can be an exciting adventure, but it can also be a daunting task. It's important to remember that purchasing a high-quality used boat is crucial for your safety and enjoyment on the water. Australia's vast coastline and numerous waterways make it a prime location for boating enthusiasts, but with so many options available, it's easy to fall into common traps. - read more
|
|
The Benefits of Getting Preapproved Boat Finance for Australians If you're in the market for buying a boat, then it's crucial to familiarize yourself with preapproved boat finance. Unlike typical boat loans where you apply for financing after you've decided on a boat, preapproval allows you to secure finance before you start shopping. This gives you peace of mind and greater control over the buying process, ensuring no surprises or delays arise along the way. - read more
|
|
Building a Strong Boat Financing Application: Tips and Tricks for Australians When it comes to purchasing a boat, most individuals require some form of financing. To secure the best possible loan terms and increase the chances of approval, it is essential to build a strong boat financing application. This article will provide tips and tricks specifically tailored for Australians on how to create a compelling application that stands out to lenders. - read more
|
|
The Captain's Checklist: Essential Documentation for Australian Boat Loan Approval Embarking on the exciting journey of boat ownership in Australia comes with its own set of nautical nuances, particularly when navigating the waters of financing. The cornerstone to a smooth sail towards securing a boat loan lies in the preparation and presentation of the essential documentation. This is not merely a procedural step, but a vital component in demonstrating your reliability and seriousness as a borrower. - read more
|
|
Unlocking Better Deals: The Negotiation Power of Specialist Finance Brokers When embarking on the thrilling journey of boat acquisition, the role of specialist finance brokers often remains a hidden key on the sail to a successful purchase. A specialist finance broker serves as a seasoned navigator in the vast sea of boat finance, expertly guiding buyers through complex financial waters to secure the best deals tailored to their individual needs. - read more
|
|
|
How to Choose the Right Boat Finance Option Before embarking on the exciting journey of purchasing a new boat, it is essential to have a clear understanding of boat finance options. Choosing the right financing option can save you a considerable amount of money in the long run. Having said that, the numerous finance options and terms can be confusing and daunting for first-time buyers. - read more
|