HomeSide

HomeSide combines the operations of HomeSide Lending, Inc. (HomeSide United States) based in Jacksonville, Florida, and a division of the National (HomeSide Australia), which was established during the year.

More than 2.3 million homeowners worldwide have their loans serviced by HomeSide.

HomeSide United States' profit after tax and before abnormal items decreased from $100 million to $87 million during 2000. The rising interest rate environment caused a steep decline in refinancing activity in the United States. Although the origination market was reduced by more than one third, the impact on HomeSide United States' earnings was smaller due to increasing revenues from mortgage servicing.

HomeSide gives to the National Group a world class loan origination and servicing operation based on highly automated and cost effective processing systems, outsourcing of selected functions, and effective control of problem loans.

HomeSide continues to grow its servicing portfolio through its diversified loan production sources and by "bulk" acquisitions of mortgage servicing rights. HomeSide's mortgage servicing portfolio grew to $355 billion by September 30, 2000.

HomeSide Australia converted 370,000 National Australia Bank and Bank of New Zealand (Australia) loans to the HomeSide servicing platform. This is part of the National's drive to promote global best practice throughout its operations.

Broker originated volumes in Australia increased by a record 135 per cent during the year. HomeSide also implemented processes and technology to provide securitisation capability in Australia.

The HomeSide online mortgage solution, featuring HomeSide's proprietary mortgage platform and powered by technology provided by one of the largest United States mortgage companies, Fannie Mae, was launched in the United States in July 2000. This means the process of applying and being fully approved for a mortgage online can take as little as 10 minutes and results in a 50 per cent reduction in loan application paper work.

HomeSide intends to leverage this ecommerce capability across products, channels and existing and new preferred partner relationships.

The ecommerce based loan origination service and technology is designed to be provided to consumer-focussed companies that have strong marketing and brand recognition, but do not have their own mortgage capability.

HomeSide is actively assessing opportunities to extend its mortgage origination and servicing expertise into the United Kingdom.