Mutual banks and finance companies have been handed a string of new growth opportunities as the major banks vacate specialised segments of the banking market such as reverse mortgages and SMSF lending. Commonwealth Bank yesterday confirmed rumours that it will draw the curtain on new lending to self-managed super funds after 12 October."As part of our strategy to become a simpler, better bank, we are streamlining our product portfolio and have taken the decision to discontinue our 'SuperGear' lending product which enabled investment in residential and commercial property through self-managed super funds," a CBA spokesperson said."These changes will be effective from close of business on 12 October."We will continue to support our existing customers who have loans with us."The move means that all of the major banks have exited the SMSF lending space, leaving the field open to a bevy of non-bank and customer-owned lenders.Westpac announced in July that it was exiting direct lending to trustees of self-managed super funds following a review of its loan product suite.While Westpac attributed its decision to a need to "simplify and streamline" its lending strategy, the move also followed shocking evidence given to the Hayne Inquiry that revealed how the bank's financial planners were inappropriately advising clients to take out SMSF loans.The slide in residential property prices has intensified the reputational risks attending SMSF loans, with many retirement savers now servicing debt on properties that are losing value.ABS data published this week indicates that the housing market correction in major Australian cities accelerated in the June quarter, with Sydney posting the biggest average decline during the period of 1.2 per cent.Banks such as Westpac and CBA are desperately trying to de-risk their business operations in efforts to shield their brands from additional reputational damage.The majors are also playing hardball with their existing SMSF borrowers after amending loan agreements to limit the ability of customers to switch from principal & interest repayments to interest-only terms.This has created potential for lenders such as Yellow Brick Road, Hume Bank, Beyond Bank, Mortgage House, Liberty and Bank of Queensland to grow lending to SMSFs.The withdrawal of major banks from the SMSF market is part of a much wider contraction of their presence in niche lending segments.CBA is currently reviewing its future in the reverse mortgage market following the release of an ASIC report on the lending segment last month.CBA sources told Banking Day last month that there was a 'very real chance' that the bank would withdraw its equity release products from sale because of the divisive effects such loans can have on family relationships.None of the other major banks are selling reverse mortgages after Westpac pulled the plug earlier this year.The exit of major banks from niche lending markets is contributing to a credit squeeze now emerging in Australia.Interest groups are already highlighting access to credit as a pressing issue in their discussions with governments.National Seniors, a lobby group representing elderly Australians, last month called on the federal government to find a solution for the reduced