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ISCOVER
By: Staff reporter
Firstfolio is looking to grow its business over the next financial year, capitalising on the purge of mortgage brokers triggered by commission cuts and looming regulation.
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According to a report in The Australian Financial Review, the mortgage manager is looking to grow its loan book from $20 billion to $30 billion by year’s end through various acquisitions.
“We see opportunities in buying books from businesses which have gone to the wall, or increasing geographic presence through groups that survived the crisis,” Firstfolio’s chief executive Mark Forsyth said.
According to Mr Forsyth, the GFC has left three types of brokers: those which had been squeezed and were seeking to sell loan books; a portion that had not changed their practice but would be helped by improving conditions; and brokers that had overhauled their models to cut costs and profit from the new backdrop.
The mortgage manager has already completed three acquisitions since December last year including First Chartered Capital, Loan Services Australia and Xplore Capital.
Firstfolio sits behind Australian Finance Group and Mortgage Choice in loan book size, but rather than outline expansion targets, Mr Forsyth said he is focusing on lifting shareholder value.
