Powered by MOMENTUM MEDIA
the adviser logo

Lender sees surge in broker business ahead of merger

by James Mitchell4 minute read

A leading mortgage lender has recorded a 21 per cent increase in branded mortgage settlements through the third-party channel in the 2016 financial year.

Listed non-bank lender Homeloans Limited this week released its annual report, in which the group highlighted the strength of the third-party channel.

“The volume of home loans originated by mortgage brokers remains strong, with this channel representing more than 50 per cent of all new loans acquired in Australia,” Homeloans CEO Scott McWilliam said.

“Given the relevance and importance of this channel in the home mortgage market, we remain focused on supporting and growing the existing relationships we have with our broker partners as a key component of our distribution strategy,” he said.

Advertisement
Advertisement

“As a result, total branded settlement volumes through the third-party channel increased by 21 per cent during FY2016.”

New funding partner

The award-winning non-bank lender, ranked first in the mortgage manager category of Momentum Intelligence’s Third-Party Lending Report: Non-Bank Lenders 2016, has a broad base of wholesale funding partners.

This group of partners includes Bendigo and Adelaide Bank, Advantedge, Pepper Home Loans, RESIMAC and Macquarie Group.  

Mr McWilliam noted that specialist lender, RedZed Lending Solutions became a new wholesale funding partner in the year to further broaden the Homeloans product offering.

“The diversity of funding relationships ensures we are able to constantly adapt our products, working with our funding partners, to maintain and strengthen our positioning in the mortgage market,” he said.

Major merger to strengthen proposition

On 20 July 2016, Homeloans entered into a Scheme Implementation Agreement with RESIMAC Limited, under which Homeloans will merge with RESIMAC subject to approval by the shareholders of both companies.

Mr McWilliam, said the proposed merger represents “an ideal opportunity for shareholders to benefit from an enlarged and more diversified combined business.”

“With an established pattern of delivering settlements growth through the current distribution structure, Homeloans is well-placed to further leverage, and build on, its relationships with brokers and retail networks,” he said.

“In a changing regulatory landscape, which has impacted investor and interest-only loans, non-bank lenders continue to establish their position as a viable alternative to the major banks.”

With its diversified funding base, Mr McWilliam believes Homeloans is well-placed to continue capitalising on these changes. He added that the proposed merger with RESIMAC, a leading non-bank lender with established product manufacturing and funding capabilities, will further accelerate the company’s ability to increase settlements and pursue other growth opportunities.

[Related: Fed court approves major mortgage deal]

Lender sees surge in broker business ahead of merger
default
TheAdviser logo
default

James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

MORE FROM THE ADVISER

Catherine Mapusua David Hyman Nicola Powell ta

Super for housing scheme is ‘limited’, industry warns

On Monday (16 May), Prime Minister Scott Morrison unveiled a new proposed housing scheme, which would allow first...

READ MORE
ubank 2022

ubank launches new look after 86 400 merger

The neobank formerly known as 86 400 and NAB’s direct-to-consumer lender UBank have officially merged into one...

READ MORE
scott morrison TA

Super reforms would balance out house price movements: PM

On Monday (16 May), Prime Minister Scott Morrison unveiled the Coalition’s new proposed housing scheme, which...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more