A new version of the old fashioned lawyer’s mortgage is making waves, according to a new survey.

First Mortgage Trust (FMT) has surpassed the $1 billion dollar mark in total assets, one of only nine of the 26 non-bank lenders who were under review that passed that milestone.. 

That review was the latest Financial Institutions Performance Survey (FIPS), done by KPMG.

That survey found non-bank lenders were able to manage a 3.24% overall increase in net profit after tax.

It also found the institutions' income from both net interest and non-interest sources declined markedly, by 8.27% and 10.86% respectively, but this was compensated for by lower funding costs, lower operating expenses and fewer impairments.

It also found Avanti pushing ahead of Latitude, while UDC maintained its clear lead, with twice the assets of the next biggest contender.

But FMT managed 9.83% growth, to achieve assets worth $1.099 billion.   It was formed in the 1990s after three law firms, Sharp Tudhope, Cooney Lees Morgan and Holland Beckett Law merged their nominee companies into a mortgage trust.

FMT also had a net interest rate margin of 6.12%, comfortably ahead of the industry average of 5.69%.

That was a slight fall from 6.93 a year ago, but it still helped the company into fifth ranking overall in its assets.

The top performers in terms of dollar value increases were FlexiGroup followed by Avanti.

The KPMG survey also showed a better performance by the sector in terms of allowances for impairments.   This happened as the nation handled the Covid danger better in 2021 than in 2020.

The best progress here was made by UDC, followed by FlexiGroup.   Latitude, however, went the other way. 

Operating expenses fell significantly on average in the sector but operating efficiency was marginally weaker. 

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