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Challenger’s mortgage management business will be renamed in the coming weeks after National Australia Bank agreed to purchase the business yesterday.
But NAB Broker’s executive general manager Matt Lawler told Mortgage Business that while Challenger’s mortgage management holdings would undergo a rebranding, its businesses including FAST, PLAN and Choice would continue to operate as separate entities retaining their own identities.
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“We are investing in all parts of the industry, signaling our belief that the mortgage broking profession is an important part of the financial services landscape and an important part of NAB’s future,” Mr Lawler said.
“However, we will make sure that our investment in Challenger does not put brokers in a compromising situation. In fact, we want everything to operate as it is currently.”
NAB also said it would fund mortgage managers and provide wholesale funding to the broker channel.
“Challenger had a lot of plans in place that were previously affected by the funding issues in the market place.
“With this acquisition, we are in effect, freeing the mortgage management business up to achieve the things they otherwise could not,” Mr Lawler said.
In the $385 million acquisition of Challenger’s mortgage management holdings, NAB will also acquire 100 per cent of Australia’s fourth largest aggregator, FAST.
Challenger, who currently has a 19 per cent stake in the aggregator, has triggered its option to buy 100 per cent of the business.
“Before the whole transaction goes through, Challenger will acquire 100 per cent of FAST, which will allow NAB to also acquire 100 per cent of the company,” he said.
