By Jill Fraser

Are big banks abusing their market power?

On Monday night the ABC’s 7.30 Report put this question to amongst others, the Australian Institute of Professional Brokers’ (AIPB) Maria Rigoni, Yellow Brick Road’s Mark Bouris and Brand Management’s Andrew Inwood.

Prompted by Treasurer Wayne Swan’s announcement that the Government’s guarantee scheme would end on 31 March the 7.30 Report debate examined the consolidation of the banking sector and the control of the Big Four banks.

Inwood noted that the CBA and Westpac are holding between them about 50 per cent market share. He added “we’re facing a system where we have two banks dominating the market to such an extent that they’re now starting to reject deals which aren’t perfect for them”.
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A new entrant in Australia’s home loan market backed by Wizard Home Loans founder Mark Bouris hopes more competition will put pressure on the big banks to keep any interest rate rises to a minimum.

Mr Bouris, the executive chairman of wealth management company Yellow Brick Road, said he was “delighted” to be back in the home loan business.

Yellow Brick Road, formed in 2007, said on Sunday it will begin offering home loan products after teaming up with Gateway Credit Union.

Mr Bouris said the arrival of new players in the home loan market was needed to “keep the big banks honest and ensure that there’s strong competition in the marketplace”.

He said the major banks had been able to raise interest rates without fear of losing market share after most non-bank lenders were forced out of business or taken over as a result of the global financial crisis.
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By Jill Fraser

Speaking to Lending Central about his push to benchmark the cost of banks’ wholesale funding Yellow Brick Road chairman, Mark Bouris said that the four majors’ recent move to increase their fixed rate is a worrying sign.

“That tells you they’re taking the view that cost of funds is going to increase tremendously next year,” he said.

Bouris has been maintaining for some time that an industry benchmark should be introduced to track the cost of banks’ wholesale funding.

Last week NAB Chief Executive Cameron Clyne backed Bouris’ proposal.

Bouris spoke to Lending Central about his concept.

LC: What benefits would be derived from publishing a benchmark funding rate for banks?
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The Apprentice Australia, the Nine Network’s new series that stars the mortgage industry’s new media personality, Mark Bouris has failed to even dent the ratings.

Scoring a dismal 692,000 viewers nationwide for its debut on Monday night, The Apprentice was crushed by Flash Forward on rival network Seven, which romped home with a whopping 1.786 million viewers.

By Jill Fraser for Lending Central

“I’m in control,” proclaims Mark Bouris, “and I’ll answer whatever I will”.

Lending Central discovered that the new role of the founder and former boss of the now defunct Wizard Home Loans fits him like a glove.

Bouris made his television debut last night as the star of the Nine Network’s The Apprentice Australia. The original version of the show was based on Donald Trump’s autocratic, take-no-prisoners approach to leadership and Bouris’ style is clearly cut from the same cloth.

Strict, nonnegotiable parameters are established as soon as the interview with Lending Central begins. Questions pertaining to his personal life are a no go zone and expectations of insights into this ferociously private personality are met with “you’ve got no chance”.

The mortgage industry’s new media celebrity is handsome, charming, opinionated and wealthy and reputedly guards his inner workings like a steel trap.

Okay, let’s see what a bit of subtle prising can reveal.
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FremantleMedia Australia is to produce an Australian version of The Apprentice led by former Wizard Home Loans creator Mark Bouris.

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Wizard Home Loans has become the first lender to cut its variable interest rate in seven years.

The announcement comes three days before the Reserve Bank of Australia (RBA) decides whether to implement a rate cut.

Economists say a combination of a slowing economy, deteriorating business conditions and tight credit markets will ensure the central bank cuts interest rates this week.
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Wizard Home Loans could become a takeover target for one of the nation’s major banks as they tussle to increase their share of the mortgage market, says Wizard chairman Mark Bouris.

Mr Bouris has painted the clearest scenario yet for the future of the company that he founded and then sold, along with his company Australian Financial Investments Group, to GE Money for an estimated $500 million.
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Wizard Home Loans is hoping to spread its magic into business lending with a new product aimed at small and medium-sized enterprises (SMEs).

The non-bank lender is best known for its home loan offerings but it also has a range of commercial finance products, including equipment finance and fleet solutions.
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The decision today by the central bank to leave official interest rates unchanged was a welcome reprieve for home owners experiencing mortgage stress, Wizard Homes Loans chairman Mark Bouris says.

“Without being melodramatic, today’s rate reprieve will mean many of these people can continue to keep their heads above water,” he said in a statement.

The Reserve Bank of Australia (RBA) board met today and left the cash rate at 7.25 per cent. Full Story

Wizard Home Loans chairman Mark Bouris is adamant he is not bidding for the business he sold to GE Money four years ago and it is now back on the auction block.

Mr Bouris and GE Money’s Australian head Mike Cutter spoke to Wizard franchisees today, updating them on a review of its ownership structure.

The review will canvass options including a complete sale, or moving it into a joint venture structure or GE taking on a strategic partner. Full Story

The Australian newspaper reports GE Money which owns the mortgage lender has opted for the sale to stave off a bid by Wizard founder and current chairman Mark Bouris who is seeking to take back control of the company.

The paper says Mr Bouris is believed to have asked GE to pay him millions of dollars upfront to run the business plus a stake in the company so he could sell it at a later date. Full Story