Challenger stops non-conforming lending
Challenger Mortgage Management sent out a note to brokers yesterday with the news that it would no longer offer loans under its non-conforming program. The decision takes immediate effect.
The acquisition of Challenger's mortgage and broker business by National Australia Bank, announced this week, did not include the non-conforming business.
The note says the decision was made following consultation with third-party wholesale funding providers.
It says: "We note that new business volumes for non-conforming have reduced considerably over an extended period of time, to the extent that we are currently receiving less than 10 applications a week.
"As a result of this decision, top-ups on existing non-conforming loans will no longer be available."