Lender reports "sharp fall" in hardship applications (Australian Broker)

Non-bank lender Firstmac has reported the number of new applications received for COVID-19 related hardship arrangements has fallen faster than the group expected. According to Firstmac managing director Kim Cannon, a “full analysis” of the trusts in its $12.8bn loan book have shown the impact of the crisis is not accelerating in the way investors feared at the outset of the pandemic.

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03 May 2020

Firstmac says fewer customers than banks in COVID-19 hardship (Australian Financial Review)

Non-bank lender Firstmac says a lower proportion of its customers have deferred their mortgages compared to major banks, and this should provide comfort to securitisation investors. Firstmac's COVID-19 hardship data shows the quality of it prime book in mortgages.

A summary of the performance of nine Firstmac securitisation trusts, published for investors but seen by The Australian Financial Review, shows that of its almost $13 billion in mortgages, 5.32 per cent are classified as being "impacted" by COVID-19.

Firstmac CEO Kim Cannon, who owns the lender, said the RMBS market had been closed but he was hopeful it would reopen soon as investor confidence returns.

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