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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04 May 2020

Home loan relief calls push $6.8bn (The Australian)

More than half a million Australians have hit pause on $6.8bn worth of loan repayments in the past six weeks. 

The higher-than-expected take-up of repayment relief from borrowers comes as non-bank lender Firstmac revealed just over 5 per cent of mortgage holders in its $12.8bn loan book had applied for hardship arrangements.

Firstmac managing director Kim Cannon said the hardship numbers were less than the “optimistic” forecasts of 6-9 per cent, and well below the level that may result in deferred residential mortgage-backed securities (RMBS) coupon payments to investors.

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