“Despite the initial dire predictions, the property market has held up”
Non-bank lender Resimac has reported a record number of settlements over the last six months, rounded off by the completion of $300 million prime and non-conforming Residential Mortgage Backed Security (RMBS) transaction this week - something Head of New Zealand CEO Luke Jackson says is down to Resimac’s “consistency and relevance” in the 2020 economy.
Resimac reports a 14% increase in assets under management, and says the $300 million transaction is the largest New Zealand issue since the Global Financial Crisis.
Jackson says that while 2020 has undoubtedly been a tough year, New Zealand’s property market has demonstrated some strong resilience.
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“It has been a challenging time for many lenders, however unlike some, Resimac hasn’t needed to slow down on lending volume or make any changes to credit policies,” Jackson said.
“Despite the initial dire predictions, the property market has held up, and many businesses have adapted to the lockdowns well.”
“Resimac’s continued availability and pragmatic approach has fuelled its record growth over the past few months, with large numbers of mortgage advisers making contact and submitting non-bank deals for the first time,” he continued.
“It’s been a lightbulb moment for many as they realise Resimac is a prudent prime mortgage solution for their clients.”
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Jackson says the RMBS transaction will help support Resimac’s continued growth, and reflects the strength of its wholesale funding programme.
Resimac’s full-year FY20 results announced a NPAT of $55.7 million, up 79% on the previous year, along with home loan settlements of A$4.7 billion - up 30% on the previous year. Jackson says that looking forward, it will be important to stay nimble and quickly adapt to the changing times.
“We know that the future will hold increased challenges for some and increased opportunity for others,” he said. “Through these times, Resimac is committed to being the pragmatic responsible and relevant residential mortgage provider that brokers and borrowers can rely on.”
