Firstmac completes $1.1bn RMBS

The total amount raised in 2019, $3.5 billion, amounts to 29 per cent of the company’s total balance sheet.

Firstmac managing director Kim Cannon stated that the results of the latest deal, Firstmac’s fourth transaction in 2019, demonstrated high investor confidence in its loan book.

Commenting on the latest RMBS raise, Mr Cannon said: “The high acceptance of our name in wholesale markets is a testament to the quality of our sales and marketing distribution, credit underwriting, our operational servicing capacity, and our market-leading low arrears and default rates.”

Mr Cannon said Firstmac’s strong performance was further evidence that non-banks provide real competition to the banks in partnership with mortgage brokers.

“Australians are abandoning the big four in droves because they know that we are here to offer them a better alternative,” he said.

“Even small players can make a big difference to the market when we are allowed to compete with the banks and show that we can provide superior service.

He continued: “This has been an extraordinary year for Firstmac as we celebrated our 40th year in business while also writing record volumes of loans and smashing the $12 billion milestone in loans under management.

“We haven’t done this by relaxing our credit policies but through competing hard on service and products in the prime loan market and beating the banks at their own game.”  

Firstmac acquisition of MCU

The announcement comes amidst ongoing delays in Firstmac’s acquisition of Maleny Credit Union, which was endorsed by the vast majority of members in April.

The deal is currently awaiting approval from Treasurer Josh Frydenberg.

Firstmac announced that its bid to acquire the Queensland-based lender for $7 million received support from 98 per cent of the bank’s members, with the bid subject to approval from the Supreme Court and Treasury.

Stakeholders were expecting a verdict on 2 August 2019; however, it was revealed that the Treasury withheld its approval on this date and requested more details from the two parties.

[Related: Lender takeover put on the backburner]