This article is from the Australian Property Journal archive
AUSSIE Home Loans is expanding into the wholesale mortgage broking business with acquisition of National Mortgage Brokers.
Wholesale mortgage brokers make up an estimated 70% of the mortgage broker market, with the remaining 30% comprising retail brokers like Aussie.
Established in 2001, nMB has nearly 200 mortgage brokers nationally settling approximately $200 million in mortgages each month with a loan book of more than $8.2 billion.
Aussie currently has a loan book of over $42 billion with more than 250,000 mortgage customers serviced by 700 accredited mortgage brokers.
Following the acquisition of nMB, the Aussie group will have a loan book of over $50 billion, and based on March 2012’s results, approximately $1.2 billion in new mortgages each month and on target for 1,000 accredited mortgage brokers within the group this calendar year.
“We are on an expansion trail and see nMB as a strategic acquisition in building our distribution capability, which is no longer just focussed on our established branded mobile and retail channels,” Executive chairman John Symond said.
“Our move into wholesale broking will complement our branded business, which we will continue to expand. With nMB, we will accelerate the rapid growth of a high quality business-to-business channel. This will be an extension to our existing business-to-consumer model under the Aussie brand and does not affect our existing operations”, he added.
nMB will continue to operate as a separate entity led by Gerald Foley.
It is expected that Aussie will complete the acquisition of nMB by early May, subject to due diligence.
Property Review
