Resimac welcomes 30% increase to home loan settlements

Resimac’s home loan settlements rose 30% to $6.3bn in the last financial year, with the non-bank attributing its growth to the support of brokers. 

Resimac’s assets under management increased 55% in FY22 compared to FY21 and its asset finance division, which began offering car and equipment loans in 2021, recorded settlements of $405m, up a whopping 212%.

“Our FY22 results are a testament to the support of the broker channel,” said Resimac CEO Scott McWilliam (pictured above). “It is pleasing to see such a broker-centric organisation that is continuing to grow with broker originations across the market. The broker channel is very important to us as we have poured decades of investment into it, and we will continue to support it by improving our service to broker, education, investment in technology and always look for ways to improve our service to them.”

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McWilliam said the record home loan settlements in the 12 months to June 30 helped steady growth for the wider portfolio.

“Our home loan settlements record has been achieved during what was an ultra-competitive 12 months, speaking to the strength of our offering for a broad spectrum of customers,” he said. “For instance, we’ve had enormous interest in our specialist products from self-employed borrowers and customers who fell on hard times during the pandemic but have since made a financial recovery. This is a testament to the longstanding relationships we have with our broker partners, who have been instrumental in helping to drive demand for our diverse product range.”

McWilliam said Resimac’s specialist product range was exclusively supported by mortgage brokers.

“This is not only in the service prime space, but the distribution channel as well,” he said. “It provides borrowers with choice and they are able to problem-solve for their customers as each customer’s circumstance is different.”

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McWilliam said the current market was slightly different to 12 months ago.

“We now have increased interest rates, higher inflation which is supported by low employment, but t. is added uncertainty,” he said. “Looking ahead, we will continue to support the broker channel with choice across prime loans, new prime loans and specialist loans. We want to continue targeting higher yielding specialist and asset finance borrowers in FY23, along with finding niches within the broader prime segment to target.”

McWilliam said a big focus for Resimac would be helping brokers serve specialist and asset finance borrowers in FY23.

“This includes self-employed borrowers who benefit from alt-doc income verification as it better represents their financial performance,” he said. “We can see this being a big market as businesses further stabilise coming out of the pandemic.”

McWilliam said asset finance was tipped for another big 12 months.

“The Sonder subsidiary will expand distribution and provide more opportunities for car and equipment loans,” he said. “Resimac is continuing to overhaul its origination and banking platforms, which will provide faster decisions and improve workflow with the third-party channel, as well as give customers an improved omni-channel banking experience.”

McWilliam said these technological improvements would include a new servicing platform that would give brokers better end-to-end oversight of applications.

“This is all supported by Resimac’s global funding program, which provides our business with a stable platform for future growth,” he said.