Thinktank closes fifth RMBS issue

Commercial and residential property lender Thinktank has closed its fifth residential mortgage-backed securitisation (RMBS) issue for $750 million after being upsized from $500 million following “positive engagement by investors”.

The RMBS transaction took Thinktanks total bonds issued to $6.75 billion over 14 securitisations overall. This included $2 billion issued in the 2023 calendar year.

According to the lender, this has confirmed its reputation as a “prominent capital markets issuer and mortgage secured lender to Australian self-employed and SME borrowers”.

Thinktank chief executive Jonathan Street said: “The participation of 21 institutional investors (including two new investors), split between domestic (81 per cent) and offshore accounts (19 per cent) for this $750 million deal, illustrates continuing strong support for the company’s dual mortgage-backed wholesale funding programs through the cycle.”

Mr Street further stated that in the midst of higher interest rates being progressively felt throughout the economy, the demand for credit has “softened noticeably”.

“Our outlook for credit performance remains cautiously positive at this time and we are keen to maintain our long-term support of SME and self-employed borrowers seeking mortgage finance solutions,” Mr Street said.

Thinktank confirmed that real money investors represented 28 per cent of the total amount issued, with bank balance sheets accounting for the remainder.

Thinktank integrates NextGen’s platform

Preceding the completion of the RMBS issue, Thinktank announced it has taken on NextGen’s ApplyOnline platform in other to grow its network of mortgage brokers through seamless electronic submissions of home loan applications from brokers.

The lender said the collaboration with the ApplyOnline platform was a “win-win” for both parties as 100 per cent of its business is broker-driven.

As part of the partnership with the platform, Thinktank stated that it had chosen to make the use of NextGenID and Access Seeker mandatory, which it said would ensure “superior application quality, reduced rework and expedited approval timelines”.

The lender commented that the electronic lodgement of home loan applications through the technology would initially be available through select broker groups, with plans to expand to additional broker sets as white label products from January 2024.

Head of lender partnerships at NextGen, Mike Ponsonby, stated: “Our collaboration with Thinktank underscores our unwavering dedication to advancing the lending industry through innovative technological solutions. We are delighted to empower Thinktank in delivering high-quality service to brokers and borrowers alike.”

[RELATED: Thinktank closes $750m RMBS issue]