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Jessica Darnbrough
Further industry consolidation is imminent, one industry stakeholder has claimed.
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Speaking to The Adviser, Stephenson Mansell Group chairman and former chief executive of Mortgage Choice Paul Lahiff said in the mortgage industry, the only constant is change.
"Consolidation is inevitable in this industry, especially at the moment," he said.
"Brokerages are facing a number of pressures including NCCP and bank preferences."
According to Mr Lahiff, NCCP has forced brokers and brokerages to reconsider their place in the industry.
"Some brokers will ultimately be contemplating whether or not the extra work associated with NCCP is worth it. They are wondering whether or not they should join with another group in a bid to ease some of their own compliance burden. Moreover, brokers are increasingly realising that, in today's market, there is benefit in scale."
Mr Lahiff said Australia's lenders are opting to deal with companies that can provide them with quality loan submissions.
"So there are a number of pressures on brokers at the moment, which ultimately will prompt greater consolidation similar to the Mortgage Gallery, Smartline merge."
Two weeks ago, Smartline announced its intentions to merge with The Mortgage Gallery in the New Year.
It represents the second acquisition for Smartline and, according to the company's managing director Chris Acret, it probably won't be the last.
"We are always reviewing our options and looking for companies that would be a good fit with our own," he said.
