yep its all broker driven like I mentioned before. Think about it - the brokers originate and sell based on price and terms. MYS is either pricing their loans too cheap or are watering down their terms (e.g. higher LVR permitted, lower thresholds for borrower suitability).
This may provide quick and cheap profits today, but if the housing market turns it will cost them a lot more than its making them in the long run. A risk strategy for an already risk, non-systemically important bank. MYS cannot survive a downturn in asset quality as it doesn't have the capital or funding base to support it.
MYS is going for the riskiest mortgages at arguably the riskiest point in the housing cycle.
This bank is the Countrywide (USA) and Northern Rock (UK) of Australia.
MYS Price at posting:
$4.48 Sentiment: Sell Disclosure: Not Held
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