A Down-Under Mortgage Company

By Bergsman, Steve | Mortgage Banking, November 2006 | Go to article overview

A Down-Under Mortgage Company


Bergsman, Steve, Mortgage Banking


A mortgage branch of a big Aussie bank is exporting an intriguing new mortgage product to these shores. Starting out with wholesale and correspondent business, this lender is targeting quality borrowers in high-end markets. BY STEVE BERGSMAN

Mary Lou Wait, a loan specialist with Allied Mortgage Services Inc. in Saratoga Springs, New York, was attending an industry trade show in September 2005 when she began chatting with a group of people from Jacksonville, Florida-based Macquarie Mortgages USA. * "They were talking about flexible mortgages and asset-management accounts," says Wait. "The conversation wasn't about interest rates, but interest costs and how you can flow your money." * For Wait, it was love at first sound bite. Parsing her phrasing most passionately, she gushes, "I fell in love with the Macquarie mortgage concept." * In January 2006, Wait sold her first Macquarie mortgage, and by spring of this year 90 percent of her business was Macquarie mortgages. That was just the beginning. She also took a Macquarie mortgage on her own house. * "One of the most satisfying aspects of my business is that when we go in and present to a broker or correspondent, almost without fail one of the principals takes a loan," notes Linda Henley, chief executive officer (CEO) of Macquarie Mortgages USA, the residential mortgage arm of Sydney, Australia-based banking giant Macquarie Bank Ltd. * Henley, herself, took a swoon when the Sydney bank came knocking.

As Henley tells the story, she was sitting in her office as head of correspondent lending for JPMorgan Chase & Co. in Jacksonville, Florida, when someone with an Australian accent called from Macquarie Bank. "That automatically perks your ears," she laughs. "My first assumption was that he wanted to talk about becoming a correspondent with Chase. But he said no, he wanted to talk about opportunities at Macquarie."

After researching Macquarie Bank on the Internet and quickly understanding the innovativeness of its product, Henley was intrigued. "It just sort of gets in your blood," she says. Henley, too, has a Macquarie mortgage on her house.

The Australian twist

For people introduced to a Macquarie mortgage, there is usually a period of extended confusion followed by a "gotcha" moment-which is, of course, when they realize how different and, more important, how useful the mortgage can be.

"Once they grasp the concept" is a phrase used often by people describing the first date between the mortgage broker and the Macquarie borrower.

"Quite honestly, you have to go through the mortgage a couple of times to understand it-but once you do, it is like, 'Wow! This is something that definitely is unique,'" exclaims Holly DeWitt, first vice president of Metrocities Mortgage LLC, a Sherman Oaks, California-based mortgage banker.

Metrocities began offering Macquarie mortgage products in January 2006. "They approached us at a conference," says DeWitt. "We took a look at their product and decided it was something we would like to offer to consumers."

Even with all the residential mortgage variations introduced in the past decade, the basic mortgage is still the workhorse 30-year, fixed-rate loan. When consumers secure a traditional 30-year, fixed-rate mortgage, they begin paying it down on a monthly schedule. The monies that pay off the loan are never seen or touched again. The check is written, the money gone.

With a Macquarie mortgage, the capital from those monthly payments can be accessed at any time over that 30-year period, because it becomes the foundation for a kind of assetmanagement account. Instead of the mortgage being a liability, it becomes a useful asset.

The Macquarie Asset Manager(TM) combines an interest-only (for the first 10 years), variable-rate loan with a home-equity line of credit (HELOC). Here's the way it works: Let's say a couple's mortgage is currently $300,000 on a house valued at $500,000, but the couple wants to buy a second home with a down payment of $100,000. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

A Down-Under Mortgage Company
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.