Mortgage funder FirstMac is looking at a revival in profit this year, and even a record profit, as the reduction in interest rates and flatter yield curve generates more favourable returns despite the slowdown in lending.Financial statements for FirstMac, published through ASIC yesterday, show net profit fell to $2.2 million in the year to June 2008 from $6.5 million in 2007.A provision to cover previously disputed goods and services tax knocked $2.5 million off the profit. The operating profit before impairments fell to $7.2 million in 2008 from $12.7 million in 2007. The impairment expenses was lower at $1.6 million from $2.7 million in 2007.Loans under management fell 12 per cent to $5.7 billion, with new lending levels curtailed by the credit crunch and the loss of access to the wholesale debt market.FirstMac negotiated six-monthly rollovers of two warehouse facilities with Macquarie Bank (which rolled recently) and HSBC (which is due to roll next week). Both have confirmed FirstMac may continue to use these warehouse lines on a revolving basis, a prerequisite for the firm's most recent wholesale bond issue for $600 million in which the Australian Office of Financial Management was the primary investor.In an effort to stir up demand, FirstMac is now promoting its "FightBack" loan with fixed, one-year interest rate of 3.99 per cent (and a comparison rate of 7.37 per cent), though with the loan to valuation ratio capped at 80 per cent to AOFM requirements.