Ken Sayer, managing director of Mortgage House, a prominent mortgage manager, said in an interview with the
Herald Sun that "I think securitisation as we know it is finished.
"It's been a waste of money. It's much cheaper for us to write loans for ANZ and St George than to do it ourselves."
Sayer said the company spent more than $6 million on building a mortgage securitisation platform last year, an investment unlikely to produce a return for a long time.
Sayer told the newspaper that "Mortgage House was worth $100 million 12 months ago but I think it's worth $45 million today."
Asked if his firm was for sale Sayer said: "No way. If I sold today I'd be ripping myself off. This is a $500 million company but it's not there yet. Give me three years and I'll have those numbers."
Macquarie Bank, Sayer and a third investor own Global Mortgage Equity Corporation, which in turn owns Mortgage House. GMEC incurred a loss of $6.2 million last year according to the newspaper, but quoted Sayer as saying the business was profitable since December,