Powered by MOMENTUM MEDIA
subscribe to our newsletter

Resimac prices $1bn RMBS transaction

The non-bank lender has priced a $1 billion residential mortgage-backed securities transaction at pre-GFC margins.

Resimac Group Ltd (Resimac) has priced its Premier Series 2021-2 prime residential mortgage-backed securities (RMBS) transaction.

The issuance is the latest in a string of transactions, which are generally used by the lending group to pay down warehouse facilities, creating capacity to underwrite new mortgages.

Over the course of the last financial year (FY21), the non-bank lending group issued $5.8 billion of Australian and New Zealand Prime and Specialist RMBS ($5.5 billion of which was Australian dollar), with pricing decreasing materially in the year. 

The RMBS senior margin on Australian prime RMBS was 70 basis points (bps) while specialist was at 80 bps in the second half of the year.

Advertisement
Advertisement

Its group net interest margin (NIM) increased 17 basis points to 207 bps in FY21, with the second half showing a particularly strong margin of 211 bps.

Overall, the group said it expects its NIM and funding costs will continue to decrease in FY22 as blended costs of funds benefit from older vintage RMBS rolling off, replaced by new issuance at lower margins.

Speaking to Mortgage Business, Resimac Group’s chief executive, Scott McWilliam, commented: “We priced the [recent] $1 billion prime RMBS trade at the lowest margins that we’ve priced since pre the GFC. [A]nd the three-year rate is the lowest prime margin that any non-bank has priced since the GFC. So that’s just an example of why cost of funds have improved, obviously helped by the fact that it is obviously a low and stable cash rate and a low and stable Bank Bill Swap Rate.”

Mr McWilliam said the group would “absolutely” continue to look to RMBS for more transactions in future, saying: “We are continuing to issue more into the market year on year, which is why our global program is so important. 

“We have a European shelf, we have a US shelf, we have a New Zealand shelf, we have an Aussie shelf, we actually have a Japanese/Asia PAC shelf. So, we will be issuing more into the market as we grow Assets Under Management, we grow our settlements. Which is why it’s important that we continue to grow relationships with overseas investors, who have contributed heavily to the last few issuances of our RMBS program,” Mr McWilliam said.

PROMOTED CONTENT


The ASX-listed group recently released its financial results for the year ended 30 June 2021 (FY21), showing record profits and settlements across its residential mortgages and asset finance products in Australia and New Zealand.

It revealed a normalised net profit after tax (NPAT) of $104 million, up 87 per cent on the prior year, and statutory NPAT of $107.6 million (up 92 per cent on the prior year).

Home loan settlements were up 3 per cent to $4.8 billion in the year (rising by $2.1 billion in the first half and $2.7 billion in the second), with the majority ($3.3 billion) being for prime lending. 

Prime settlements increased by 35 per cent in the second half of the year, which the lender said would provide strong momentum into the new financial year.

Australian brokers continue to write approximately 80 per cent of the group’s new loans, totalling $3.7 billion in FY21.

[Related: Non-banks announce RMBS, funding deals]

Resimac prices $1bn RMBS transaction
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.