Login
ISCOVER
The new Macquarie backed aggregation group sees the banks rather than other brokerages as the competition.
Three aggregators have signed an agreement in principle to merge. The Mortgage Professionals (TMP), National Brokers Group (NBG) and The Brokerage (TB) will officially join together early next year under a new name and brand.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The proposed chief executive officer Jeff Zulman told Mortgage Business that the newly formed aggregation group would set its sights on taking business from the big banks.
“It is not our aim to compete with other large aggregation groups. We want to be seen as competition to the major banks,” Mr Zulman said.
“While taking on the majors seems like a David and Goliath style battle, we hope to make the best out of our situation and really stir up some much needed competition.”
The proposed aggregator would bring together a national network of more than 900 brokers that collectively have loans under management of about $16 billion.
The heads of the existing groups will join the board of the new entity.
According to Mr Zulman, the group hopes to expand further and increase its broker numbers very quickly.
“All of the groups currently enjoy organic growth, so we will continue to support that under the merged aggregator group. However, we also intend to partake in some inorganic growth by way of mergers and acquisitions,” he said.
Mr Zulman said there was no magic number as to how many brokerages they would like to acquire over the coming year, and instead said any acquisitions would be based on quality rather than quantity.
“We have hopes to acquire brokerages and other aggregators that share our common principles,” he said.
“The merge will help all parties save on costs associated with the impending licensing and IT platforms.”
