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Brighten’s growth focus

Publication Date: Wednesday, 15 October 2020
This article originally appeared in KangaNews

Brighten’s growth focus

Adam Moore, director, head of funding and securitisation at Brighten Home Loans in Sydney, discusses the market entrant’s funding journey so far and plans for public securitisation issuance.

What is the Brighten business story?

Brighten is an Australian-owned and regulated nonbank lender, responsible for the origination, underwriting, servicing, and funding of its mortgage portfolio. The business was established in 2017 and is wholly owned by Real Asset Management (RAM).

We saw an opportunity in the nonbank space as a result of regulatory changes in 2016 and 2017 that favoured the sector and we launched with an innovative product offering that includes home loans for nonresident borrowers. It was becoming increasingly difficult for existing lenders in the space to fund these loans, so there was an opportunity to enter the market in a profitable, high-margin niche, supported by the backing of RAM and its asset-management expertise.

We have grown the portfolio profitably and invested in processes, people, and technology solutions that will allow us to expand the business further. Our end-to-end digital mortgage platform gives us cost and service efficiencies and the flexibility that comes with not having any legacy issues.

We have broadened our product range to offer prime and near-prime, nonresident and construction loans, growing our assets under management to more than A$500 million (US$364.2 million). We are actively recruiting and investing in the growth of our broker network, including aggregator channels, in support of achieving a targeted A$2 billion loan book in two years.

What challenges has COVID-19 brought for Brighten’s origination and how has the company responded?

There were challenges across the board. However, we were able to respond rapidly and put the necessary adjustments in place with minimal disruption to the business.

We have a cloud-based mortgage platform so could shift quickly and seamlessly to working remotely. Our team is already located in five locations so it was not too much of a hurdle to overcome.

From a credit perspective, we have been monitoring our borrowers’ situations very closely. We have also been careful with new origination and tightened our servicing criteria to include additional tests on rental reliance, as well as additional underwriting and verification steps.

We did not make any material policy changes but did look at how some of our policies were implemented. We communicated these changes to brokers and did not have to close any of our distribution channels, while still ensuring we write quality business. The credit quality of the portfolio is demonstrated by the excellent asset performance since inception.

How has Brighten funded its lending to date and what plans do you have for the short and medium term?

We have two warehouse-funding arrangements in place with international investment banks. We also have funding diversification through a wholesale credit fund on the asset-management side of the business.

This reliable and stable funding platform gives us flexibility in the types of loans we write.

The short-to-medium term plan is to build our funding lines as we believe it is an ideal time to expand our lending business into the growing prime and near-prime loan segments. We believe we will be able to compete through a combination of streamlined product offering, simple and competitive pricing structure, and superior service proposition.

While we have proven capability in originating, servicing and funding, we understand the need to show track record as we move into new products. Fortunately, Brighten has celebrated several milestones including the formation of partnerships with leading mortgage aggregators and some of Australia’s best-known brands, which will help build the portfolio and further demonstrates our capability and commitment to becoming a major nonbank lender.

We are actively engaging potential funders to develop new funding lines, which will enable us to scale our growth and enter new product segments. While we can fund the initial growth period ourselves, our development is focused on securitisation-friendly products, as we see securitisation as the platform for funding growth.

Nonresident residential mortgage-backed securities (RMBS) issuance is a nascent product in Australia. Have you had much interaction with institutional investors on this type of lending?

We now have a solid track record with our nonresident loan book and a portfolio that is nearing sufficient size to engage the market on a public transaction. Brighten will be a first-time issuer so we are embarking on the education process to help investors and other market participants understand our model.

Our first public securitisation deal will be a nonresident RMBS. However, as the portfolio grows we also plan to be a regular issuer in the domestic space.

客户和合作伙伴对我们的评价

给客户解释清晰、办理速度快、服务态度亲和

Jun,

我的BDM Mikai Ning从我第一次认识她到现在有两年多的时间,非常的专业、超高效,很耐心的聆听和讲解我的每一个问题,即便是在她怀孕期间也专门嘱咐我“不要紧,有问题尽管问,看到一定及时回复”。态度永远超级nice!和她沟通总是让人感到轻松和愉快!我做贷款这么多年,Mikai是我最喜欢的BDM没有之一!我要给她120分的好评

Lulu, 铂腾注册贷款经理人

对Mikai Ning超级好评,她不仅业务娴熟,而且对工作认真负责及时答复无无论是任何时间都会及时回复。节假日有问题咨询也能做到及时回复。对broker超级有耐心和负责,我们非常喜欢和支持Mikai Ning和Brighten!

Fan, 铂腾注册贷款经理人

Brighten的BDM Liwen给我留下了深刻的印象,无论是policy和product方面的扎实度,还是在贷款环节中的任何一个小问题,Liwen总是在第一时间及时给出帮助。Brighten一直给我很好的体验,好的利息和好的BDM和好的credit team,让我总是在第一时间把Brighten产品作为推介给客户的首选

Jinkai, 铂腾注册贷款经理人

Mikai 是一个积极主动,工作能力强,并且拥有良好的交际技能的人。我们和Mikai的合作十分的顺利,希望能和Brighten保持这样良好的合作关系。

Alan, 铂腾注册贷款经理人

我的BDM Leo Liu 在产品方面的介绍为我提供了很大的帮助。 我期待与Brighten和Leo Liu建立更好的合作关系。

Anthony, 铂腾注册贷款经理人

Mikai 是我们的BDM 她很负责任. 能及时的回复我们的问题 如果有policy的update 她也是尽可能的除了email 之外 电话或者message给我们. 确认我们能收到 了解这些变化. 以确认我们能更好的为客人服务. 非常感谢长期以来对我们broker的支持。

Terry, 铂腾注册贷款经理人

非常便捷,利率也比较亲民,铂腾房贷解决了海外客户贷款难题;感谢BDM Mikai 的大力支持。

Yuhui, 铂腾注册贷款经理人

我要表扬并且感谢BDM-刘丽雯Liwen。她一直以来很负责,对每一个我的递交的申请都很负责,并很耐心的帮助每一个客人提出的麻烦的要求。最后都有效的解决了,并且让客人也很满意。她也非常专业,经常能给出有效可靠的建议帮助我们broker。是个很好的BDM。谢谢。

Jakie, 铂腾注册贷款经理人

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