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Collins Securities has announced plans to launch a new boutique aggregation group that it believes will fill a gap in the market.
According to Collins Home Loans chief executive Rob Emmett the other aggregation models out there are not "hitting the mark" particularly when it comes to monetising a broker’s trail book.
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The new aggregation model launched by Collins will provide brokers with an upfront payment for their trail book as a cornerstone of its value proposition.
“Under our aggregation model, we will acquire part or all of a broker’s trail book for market value, giving them the necessary funds to expand their business or pay off debts.”
Mr Emmett said the group would pay between 1.2 and 1.8 times what the trail book is worth, depending on the quality of the loans.
In addition to this trail payment, Mr Emmett said brokers that join the group would also be given access to a panel of 30 lenders; NCCP compliance support; direct access to credit staff; increased commissions; lead generation and back office training and support.
“We are currently looking to recruit upwards of 30 brokers. These brokers will have some experience in the industry and are looking for a aggregation model that is unique and offers them the ability to grow their business,” he said.
“Most brokers are finding the market very tough at the moment and are having to cope with a number of challenging issues including a drop in loan volumes, complex compliance regimes, aggregator costs and the lack of back office support.
With the expansion of our program, brokers receive the complete package. They receive an upfront payment for their trail book as well as an option of ongoing income if they wish,” Mr Emmett said.
