Non-bank lender Resimac avoided a "blow-out' in bad debts by not offering no-doc or 100% loans, its head of securitisation Mary Ploughman has said.
Her comments came as Resimac reported a 77% increase in profit for the year to June of $14.2m.
The good profit result was due to repricing during the GFC and access to cheaper funding sourced prior to the downturn
Ploughman told the AFR a fall in demand due to banks writing 95% of all lending saw Resimac's loan book fall from $4.5bn to $3.8bn
But she said Resimac had never stopped lending. She also forecast securitisation markets, where Resimac has traditionally sourced its funding, to open up next year along with renewed confidence in non-banks.
She said though the lender would be reluctant to issue RMBS without government support. Last month Resimac priced a $290m RMBS issue following investment from the AOFM scheme.
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Resimac prices $290m RMBS - Resimac priced a $290m RMBS issue - the second such transaction of the year and the third under the AOFM scheme.
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