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Timothy Holmes has been remembered as a pioneer of the non-bank sector who forced the banks to lower mortgage rates and become more flexible.
Mr Holmes passed away on Saturday after co-founding Homeloans and serving as its chairman since 2003. Business partner Rob Salmon hailed him as a "giant in the mortgage industry".
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Advantedge Financial Services' general manager of distribution, Brett Halliwell, said one reason for Mr Holmes' success was his strong strategic vision.
"Tim was a pioneer in the non-bank sector in establishing a credible brand through direct distribution, through broker distribution and also on the wholesale funding side," Mr Halliwell told The Adviser.
"He's left Homeloans as the leading player in the non-bank market, and also a sector that he fundamentally founded."
ME Bank chief executive Jamie McPhee said Mr Holmes drove the emergence of the non-bank sector in the mid-1990s, alongside Mr Salmon and Aussie Home Loans founder John Symond.
"It really was the start of securitisation. We saw a whole new sector start to challenge the dominance of the major banks and building societies in home loans," he said.
Mr McPhee said that Mr Holmes and his two contemporaries forced the banks to reduce their mortgage rates.
"If you were to talk about his legacy – everyday Australians who got a mortgage got better margins because of what these guys did," he said.
"It's more than just a business legacy – it was a community dividend that was achieved."
Mr McPhee said the banks were also forced to moderate their lending guidelines, which had traditionally forced borrowers to conform to rigid rules.
MAS co-founder Troy Phillips - who previously served as general manager of sales at Homeloans - said many of today's prominent mortgage identities had learned at the feet of Mr Holmes in the 1990s, back when Homeloans was known as WA Homeloans.
"When Aussie Home Loans first popped up on the east coast, they were the Aussie Home Loans of the west," he said.
"WA Homeloans was huge in Western Australia and I think many people who are big players in Western Australia actually worked at WA Homeloans at some stage as a mobile lender."
Mr Phillips told The Adviser that Mr Holmes was a very worldly person who amassed lots of international finance contacts during his career.
"He never minded imparting his knowledge or sharing his contacts with you. He was never one to closet information away – he always shared everything and wanted the best for you," he said.
Meanwhile, FBAA chief executive Peter White has offered his condolences to Mr Holmes' family, friends and colleagues.
"Mr Holmes was highly respected in the finance industry. He was a leader and innovator of his time who will not be forgotten," Mr White said.
"His achievements were profound and his work will be an inspiration for years to come. Tim Holmes will be deeply missed."
