ME Bank has launched what it calls a portfolio funding business, which will finance loans and other receivables originated and managed by partner businesses.ME announced the formation of the new business this week but it actually did its first deal in March, when it backed a new reverse mortgage lender, Household Capital.ME is providing Household Capital with A$100 million of funding and is taking an equity position. The company is chaired by former Minister for Superannuation and Corporate Law Nick Sherry and headed by Josh Funder, who appears to have no financial services background, but has worked with the Clinton Foundation.It is offering a reverse mortgage, with loan sizes ranging from A$50,000 to $550,000.ME says the portfolio funding business builds on its securitisation skills and will provide innovative funding opportunities for a range of businesses, including fintechs.ME's general manager of wholesale banking, John Powell, said: "We see opportunities to partner with existing and newer lending entities that are seeking to disrupt the delivery of lending products to retail and SME clients".