Major banks getting choosy on mortgage customers: Pepper CEO
The chief executive of Pepper Money, which will list on the ASX on Tuesday, says major banks are getting more selective about the mortgage customers they take on, which should help the non-bank lender grow as it targets “non-conforming” borrowers.
Mario Rehayem said major banks were finding it tough to process mortgage applications quickly because they were too big to conduct bespoke assessments on borrowers who fell outside the standard cookie-cutter, while constant changes to credit policies were frustrating mortgage brokers who were not sure if non-prime customers would be accepted.
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