Firstmac recognised for ‘strong’ loan servicing

Standard & Poor’s has affirmed the “strong” ranking assigned to Firstmac as a servicer of prime mortgages.

S&P says the ranking reflects its opinion that the non-bank lender continues to demonstrate strong servicing quality.

“Firstmac has an experienced management team and effectively uses technology in its well-automated mortgage loan servicing operations,” it said.

Firstmac’s key strengths include its “well-established position” as an experienced primary servicer of residential mortgages and its “solid” loan processing and servicing infrastructure, “which provides Firstmac with an end-to-end integrated approach to loan origination, servicing, and management”.

S&P also noted that the lender has a “comprehensive” corporate governance and risk management framework, a “robust” training and development program, and “prudent” servicing and policy procedures that contribute to a low arrears level.

The credit ratings agency said the outlook on Firstmac’s “strong” loan servicer is stable, reflecting its view that the lender will maintain its servicing strengths in the medium term through continued improvements in its processing and servicing practices.

Firstmac managing director Kim Cannon said the ranking confirmed the company’s position as a prudent and sustainable lender.

“The S&P Global Ratings’ ‘strong’ ranking is a welcome demonstration of confidence from the world’s leading ratings agency,” Mr Cannon said.

“This ranking is based on a thorough review of our operations and confirms that our operations, risk management and corporate governance are world class.”

[Related: Firstmac completes $500m RMBS issue]

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