NAB Becoming a US Aussie

Hot on the heals of some imported cavalry (see NAB note 2 April 1998) in the form of an executive team from NAB’s newly acquired Home Side mortgage origination business, National Australia Bank has announced it is buying the mortgage servicing assets of Banc One Mortgage Corporation in the US which has a mortgage origination book of $US18bn.

This places NAB as the sixth biggest mortgage provider in the US and is a major indication that NAB intends to pursue its role as a mortgage originator as a strategy to expand its business base, and follow suit closer to home.

We can expect to see NAB aggressively targeting Australian mortgage originators such as Aussie Home Loans and RAMS using their newly acquired management team.