Firstmac outgrows RMBS funding
Specialist mortgage lender Firstmac is on the hunt for an equity investor and another option on realising a vision to transform into a bank."We're just looking for a big brother," said Kim Cannon, the lender's managing director and sole shareholder."We've outgrown the securitisation markets. Just relying on securitisation can't happen."Founded in Brisbane in the 1980s, Firstmac has outlived once better-known names in the non-bank sector and is one of the largest non-bank lenders in Australia, with A$7.1 billion in assets."We should be morphing into something big. I'd love to turn into a bank but cannot turn into a bank and take deposits," Cannon said.Firstmac owns nearly 15 per cent of WA-based Goldfields Money and already white-labels term deposits issued via that ADI.Its principal brand for loan originations is Loans.com.au, a brand often at or near the top of rankings of the "cheapest" home loan interest rates.Firstmac is settling an average of $230 million of loans a month, which it estimates to be about one per cent of the market.Investment bank Goldman Sachs is working with Firstmac to identify potential investors.At June 2015 Firstmac had around $45 million in net assets, almost all of it retained earnings.Assets were $7.1 billion and net profit for the year was $3.7 million.