FirstMac fine for now

FirstMac had its servicer rating affirmed at above average by Standard & Poor's yesterday.

The takeover by FirstMac of the broker-sourced mortgage portfolio of HSBC is the trigger for the review, with FirstMac systems now running the purchased portfolio of $2.2 billion.

FirstMac sold $1.5 billion of these loans with no great difficulty into international markets in June 2007 - months after the sub-prime storm broke in the US but weeks before the information muddles of famous banks created the current credit shock.

So FirstMac are in no great rush for funding, which is handy as there isn't any.

Ten business development managers and 12 operational staff transferred to FirstMac from HSBC. They help market loans direct to brokers and through aggregators.

Private label clients work off FirstMac systems.

Originator managers "write substantial volumes of business", use self-branding and may, when funding returns, opt for a special-purpose vehicle, according to the S&P review.

FirstMac's arrears profile is above average - often through two per cent in recent years, and often double industry averages.
 
The firm sold $1 billion in mortgage bonds in 2004 and more than $2 billion already in 2007.