Macquarie Group:Winds Back Australia Mtg Origination Service

March 05, 2008, 10:27 p.m. EST 1 Min Read

SYDNEY (Dow Jones)-- Macquarie Group Ltd. (MQG.AU) said Tuesday its bankingdivision will substantially reduce the issue of new home loans to Australiancustomers from Friday due to the significant increase in funding mortgages andcurrent conditions in global securitization markets.

In a statement, the investment bank said it will "substantially reduceorigination of new residential mortgages in Australia," from March 7, but willcontinue to provide a full range of services for the 95,000 loans held byexisting customers.

"New mortgage business will continue to be written although it will be at muchreduced volumes," said the head of Macquarie's banking and financial servicesgroup, Peter Maher.

The bank said deteriorating conditions in wholesale securitization marketsover the past six months have resulted in a sharp rise in the cost of fundingits mortgages and seen significant reductions in the availability of fundingfrom both the domestic and international mortgage securitization markets.

-By Bill Lindsay, Dow Jones Newswires; 61-2-8235-2956; bill.lindsay@dowjones.com

(END) Dow Jones Newswires 03-04-08 1642ET Copyright (c) 2008 Dow Jones & Company, Inc.

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