A mortgage aggregator has announced the launch of a new revenue-sharing model for its broker network.
National Mortgage Brokers (nMB) has announced the implementation of its new “nMB Launch” partnership plan – an alternative remuneration arrangement tailored for new entrants in the broking industry.
As part of the new scheme, brokers will be permitted to keep 100 per cent of their upfront and trailing commissions and pay a fixed onboarding fee of $1,000, a fixed upfront fee of $160, and a fixed trail fee of $5.
nMB’s newly appointed head of sales, Terry Walker, commented: “This new plan provides brokers with more control over their profitability during a key phase of their growth, all the while still benefiting from nMB’s high-support approach.”
Speaking to The Adviser, Gerald Foley, managing director of nMB, added that he expects brokers that opt for the Launch model to transition to the aggregator’s traditional revenue-sharing model, which it has rebranded to “nMB Build”.
“If [a broker’s] volumes are either intermittent or low for a sustained period, it makes sense to provide a flexible option.
“We think most brokers will quickly move from the Launch to Build model, but they may want to enter into the Launch model in the early days of their broking careers, where the economics would work better.
Mr Foley said that despite continued uncertainty over remuneration in the broking industry, nMB believed it was the right time to introduce the new model.
“The recent market uncertainty has caused many to adopt a wait and see approach, but we think there is no better time than now for the broking industry,” he said.
“nMB has always been committed to supporting our brokers to build better broker businesses. The changes we are now announcing mean even more support and resources for our growing network.”
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