Westpac is closing its RAMS business to new home loan applications after completing a strategic review of the group.
A statement to the ASX said Westpac is “providing franchisees with mutually agreed support and there will be ongoing opportunities for RAMS employees within Westpac”.
Damien MacRae, Westpac managing director mortgages, said “We have delivered considerable portfolio simplification over recent years, and after a thorough review, have decided that offering home loans through RAMS franchisees is not right for Westpac.
“We will help our customers, franchisees and our people through this process,” he said.
Westpac will retain the RAMS mortgage portfolio of loans and existing RAMS customers’ loans will remain in place. Customers will continue to access service through the RAMS app, website and call centre.
The bank bought the home loans business in 2007 and earlier this year had a failed attempt at selling RAMS.
It has been an unhappy period for the mortgage broking chain which is under corporte watchdog scrutiny. The Australian Securities and Investments Commission is investigating RAMS over the supply of home loan products from 2019 to 2023. A separate investigation is underway by the Australian Prudential Regulation Authority.
And in May former franchisees launched a class action against the home loan provider, alleging their franchise agreements were terminated without proper cause.
