Powered by MOMENTUM MEDIA
the adviser logo
Lender

Lender completes $1bn RMBS deal

by Reporter4 minute read
House-Mortgage

One non-bank lender has completed a major Australian residential mortgage-backed securities (RMBS) deal, with the help of two major banks.

Firstmac's $1 billion transaction was successfully placed and priced in a deal arranged by ANZ and jointly led by Westpac Institutional Bank, nabSecurities and JP Morgan.

A total of 22 investors participated in the transaction, including 16 real-money accounts.

Firstmac chief financial officer James Austin said the market acceptance of the lender’s largest RMBS deal had been exceptional.

Advertisement
Advertisement

“To achieve a result of this size demonstrates [that] Firstmac’s strategy of financing high-quality loans online has gained significant traction,” he said.

Mr Austin said Firstmac’s solid history of successful RMBS deals had fostered investor interest for more than a decade.

“The Firstmac bonds have been well received by an investor market keen to take up an offering with a strong track record,” he said.

“Firstmac has demonstrated its ability to innovate and create opportunity in the home loan sector through the use of technology to capture market share from more traditional bricks-and-mortar lenders.”

Mr Austin said it was the growing strength of Firstmac’s online retail brand, loans.com.au, that helped the lender achieve record-breaking RMBS deals.

“Loans.com.au has set some records of its own in recent months, with loan applications doubling and settlements outstripping previous peaks,” Mr Austin said.

“The online lending model is very effective: it’s convenient for customers who prefer to do business online, and it is efficient in terms of overheads.”

Firstmac has issued more than $13 billion in RMBS since 2003.

[Related: Firstmac's digital initiative engages brokers]

house mortgage

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

CEO Sleepout Pepper Money

Mortgage industry raises more than $160k in CEO Sleepout

On 23 June 2022, several CEOs and directors in the mortgage and finance industry spent a night without shelter to...

READ MORE
alex whitlock

New membership program revealed for The Adviser

Members will be able to access exclusive sales and marketing strategy, business intelligence and exclusive market...

READ MORE
Hot property TA

Hot Property: The biggest property headlines from the week 27 June to...

Welcome to The Adviser’s weekly round-up of the headline stories and news that are important not only for the...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more