NAB beefs up its mortgage team.

Australia's most profitable bank takes delivery this month of its newly acquired mortgage management team courtesy of its purchase of US operation Homeside Inc.

The NAB has been one of the last cabs off the rank in the quest to become what it once derided ~ a low cost, no frills mortgage originator.

NAB is hoping to make significant cost savings to the cost of funds and servicing its origination mortgage book, and if it can replicate these across its entire loan book, could be on the way to achieving its targeted, but currently stalled cost to income ratio of 40%.

Reports earlier this week indicated that direct banks, such as ANZ Direct and the soon to be launched AMP might have a cost to income ratio of just 25%.

This will please both shareholders and borrowers alike provided both parties receive some of the benefits.

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