Briefs: AMP and Beyond Bank launch RMBS deals, Mortgage Choice CEO moving out, and more

Banking Day staff
  • AMP Bank has launched its second issue of residential mortgage-backed securities for the year, seeking A$500 million of funding. Progress 2014-2 Trust is backed by a pool of prime residential mortgage, with lenders' mortgage insurance covering all loans. Fitch Ratings said the arrears levels of AMP's Progress trusts have been below the average for prime RMBS.

  • Beyond Bank Australia has partnered with the mobile payments specialist Mint Wireless to launch a mobile payment service. Beyond Bank said in a media release that it planned to enter the mobile point of sale market in the first quarter next year. Along with transactions services, Mint Wireless supplies attachments for smartphones that turn them into payment terminals. Beyond Bank merchants will be able to take the full range of card payments on iOS and Android devices.

  • ANZ and the Foundation for Rural and Regional Renewal have selected the final 32 community projects across regional Australia to receive $255,000 in funding, made as part of the 2014 Seeds of Renewal grants program. This has been running for twelve years and aims to help build thriving communities in regional Australia by advancing education and employment opportunities. Including this year's recipients, ANZ has provided more than $3.5 million in grants to 708 projects since the program with FRRR commenced in 2003. ANZ's technology partner, Lenovo, has also provided technology products worth almost $30,000 to an additional eight projects.

  • Beyond Bank Australia has returned to the securitisation market for the first time since 2011, launching an issue of residential mortgage-backed securities with the aim of raising A$300 million of funding. Barton Series 2014-1 Trust is backed by a pool of prime residential mortgages. The pool characteristics reveal Beyond Bank's conservative approach to lending: the average loan-to-valuation ratio is 59.5 per cent and the average loan size of $215,000. All loans are covered by LMI, there are no interest-only loans and investment loans make up only seven per cent of the pool.

  • The National Australia Bank is taking some definite steps towards offloading its life insurance business, part of the broader wealth management unit MLC. The AFR reports that NAB recently appointed Deloitte to start work on the financials, ahead of the potential A$1.4 billion sale of the life insurance unit. This is in line with the message delivered by NAB chief Andrew Thorburn at the bank's full-year earnings result where he said: "We need to examine options on how to improve the return on the core capital".  JPMorgan is also thought to be advising NAB on its options. NAB worked closely with JPMorgan four years ago when it attempted to buy AXA Asia Pacific, but was stopped by the Australian Competition and Consumer Commission.

  • Mortgage Choice has announced that Michael Russell will retire as chief executive officer after the completion of the 2015 financial year and "the identification of an appropriate successor". Russell joined the company as CEO in 2009 and developed and implemented two three-year strategic plans. These enabled the franchise group to grow and prosper through the aftermath of the GFC. He will complete the second of those three-year plans before he leaves the company.

  • The recent change flagged by ME Bank to expand access to its financial products beyond industry super fund and union membership has come into effect. However, while "all ME Bank deposit and loan products and rates are now open to all Australians," a bank spokesman explained that an entirely new member benefit program for unions and industry super funds has replaced the prior eligibility criteria, and "includes special quarterly offers to members across all our products (transaction and savings accounts, credit cards and home loans), not just home loans which was the limitation of the previous model." He said this would "provide more reasons for members of industry funds and unions to bank with us and we expect to see member penetration increase over time."