Resimac will maintain its focus on the near-prime and non-conforming side of its mortgage business, after pricing a A$1 billion issue of non-conforming residential mortgage-backed securities. Resimac chief treasury officer Andrew Marsden said the transaction allowed the company to continue providing brokers with flexible products for self-employed and credit impaired borrowers. Like other non-bank lenders, Resimac has responded to rising funding costs and intense competition in the home loan market by shifting its focus to higher-yielding specialist mortgage lending and asset finance. Resimac’s mortgage settlements were down 32 per cent year-on-year to $2.4 billion in the six months to December. Specialist loans accounted for $1.6 billion and prime loans $800 million. Asset finance settlements grew 18 per cent to $210 million. The transaction was upsized from $500 million at launch. The A notes, worth $700 million and with a weighted average life of 1.6 years, were priced at a margin of 175 basis points over the one-month bank bill swap rate. Pricing of the AB notes, worth $130 million and with a life of 3.4 years, was 265 bps over one-month BBSW. Pricing on the B notes, worth $106 million and with a life of 3.4 years, was a margin of 340 bps. Pricing of the C, D, E and F notes was in a range between 385 bps and 800 bps.