Reverse mortgages the future for Australian securitization

ABN AMRO makes its second foray into reverse mortgages in a month, suggesting these equity release loans will become the next to be securitized.

ABN AMRO's private equity business in Australia has purchased a 39.2% stake in non-conforming lending specialist, Bluestone Group. The deal comes just a week after ABN AMRO's wholesale bank launched its own reverse mortgage product called Home Equity Access to be sold through financial advisors.

The deals are intended to fuel ABN AMRO's residential mortgage-backed securitization business which is under pressure as a slowing housing market in Australia brings with it a decline...

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