FirstMac and Members Equity first to get RMBS boost
By Agnes Gajewska
|
30 Oct 2008
Non-bank lenders, FirstMac and Members Equity have been the first beneficiaries of a $500m government RMBS investment, the Australian Financial Review reported.
The investment is part of the government's $8bn scheme aimed at supporting the depleting RMBS market and lifting competition in the mortgage industry.
Both FirstMac and Members Equity were deemed eligible for the $500m investment in their RMBS due to their contribution to competition in the market.
FirstMac's CFO, James Austin, told the Australian Financial Review that its size was a factor in gaining the investment.
"We are the second largest non-ADI after Challenger and have written $7.5bn of prime loans over the past five years," he said.
Austin added that FirstMac relied on securitisation and that new applications had slowed by 75% since July 2007.
Both lenders have expressed their intention to use the $500m cornerstone to attract more investors.
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