CBA sends borrowers to Bluestone
Bluestone Mortgages has signed up the Commonwealth Bank as a source of new referrals for home loans. Bluestone is a non-conforming lender which lends to borrowers who don't meet normal bank lending standards and will pay commissions to the CBA for each loan it refers. An adverse credit history or an inability to document income are the main reasons borrowers end up in the non-conforming loan market.
CBA says invariably there are some home loan applicants who don't meet the bank's criteria and they will be referred to Bluestone while the CBA maintains a “core banking relationship” with the customers. Currently, Bluestone distributes its loans via mortgage brokers. It has referral arrangements with several home loan lenders, including St George, BankWest and Wizard. The non-conforming share of the total mortgage market is about 3 per cent with Bluestone at 1 per cent. Bluestone's CEO Alistair Jeffery believes the non-conforming market could grow to between 4 and 6 per cent.
See Infochoice's non-conforming category for more details.